10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                               to

Commission file number 001-32597

CF INDUSTRIES HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware		20-2697511
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
4 Parkway North, Suite 400		60015
Deerfield,	Illinois	(Zip Code)
(Address of principal executive offices)

(847) 405-2400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
common stock, par value $0.01 per share	CF	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No ☒

218,325,839 shares of the registrant’s common stock, par value $0.01 per share, were outstanding at July 29, 2019.

CF INDUSTRIES HOLDINGS, INC.

TABLE OF CONTENTS

PART I.	Financial Information
	Item 1.	Financial Statements (unaudited)
		Consolidated Statements of Operations	1
		Consolidated Statements of Comprehensive Income	2
		Consolidated Balance Sheets	3
		Consolidated Statements of Equity	4
		Consolidated Statements of Cash Flows	5
		Notes to Unaudited Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
	Item 4.	Controls and Procedures	53
PART II.	Other Information
	Item 1.	Legal Proceedings	53
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
	Item 6.	Exhibits	54

CF INDUSTRIES HOLDINGS, INC.

PART I—FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended   June 30,						Six months ended   June 30,
	2019			2018			2019			2018
	(in millions, except per share amounts)
Net sales	$	1,502		$	1,300		$	2,503		$	2,257
Cost of sales	1,003			988			1,784			1,755
Gross margin	499			312			719			502
Selling, general and administrative expenses	62			53			120			110
Other operating—net	(37		)	3			(33		)	(18		)
Total other operating costs and expenses	25			56			87			92
Equity in earnings of operating affiliate	1			18			8			25
Operating earnings	475			274			640			435
Interest expense	59			61			119			121
Interest income	(4		)	(2		)	(8		)	(5		)
Other non-operating—net	(2		)	(3		)	(3		)	(4		)
Earnings before income taxes	422			218			532			323
Income tax provision	102			44			94			61
Net earnings	320			174			438			262
Less: Net earnings attributable to noncontrolling interests	37			26			65			51
Net earnings attributable to common stockholders	$	283		$	148		$	373		$	211
Net earnings per share attributable to common stockholders:
Basic	$	1.28		$	0.63		$	1.68		$	0.90
Diluted	$	1.28		$	0.63		$	1.67		$	0.90
Weighted-average common shares outstanding:
Basic	221.1			234.0			222.2			233.9
Diluted	222.3			234.9			223.4			234.8
Dividends declared per common share	$	0.30		$	0.30		$	0.60		$	0.60

See accompanying Notes to Unaudited Consolidated Financial Statements.

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CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three months ended   June 30,						Six months ended   June 30,
	2019			2018			2019		2018
	(in millions)
Net earnings	$	320		$	174		$	438	$	262
Other comprehensive (loss) income:
Foreign currency translation adjustment—net of taxes	(8		)	(67		)	24		(50		)
Unrealized loss on securities—net of taxes	—			(1		)	—		(1		)
Defined benefit plans—net of taxes	5			7			3		6
	(3		)	(61		)	27		(45		)
Comprehensive income	317			113			465		217
Less: Comprehensive income attributable to noncontrolling interests	37			26			65		51
Comprehensive income attributable to common stockholders	$	280		$	87		$	400	$	166

See accompanying Notes to Unaudited Consolidated Financial Statements.

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CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	June 30, 2019			December 31, 2018
	(in millions, except share and per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	858		$	682
Accounts receivable—net	313			235
Inventories	290			309
Prepaid income taxes	1			28
Other current assets	26			20
Total current assets	1,488			1,274
Property, plant and equipment—net	8,336			8,623
Investment in affiliate	101			93
Goodwill	2,353			2,353
Operating lease right-of-use assets	281			—
Other assets	304			318
Total assets	$	12,863		$	12,661
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	416		$	545
Income taxes payable	13			5
Customer advances	21			149
Current operating lease liabilities	89			—
Current maturities of long-term debt	498			—
Other current liabilities	5			6
Total current liabilities	1,042			705
Long-term debt, net of current maturities	4,203			4,698
Deferred income taxes	1,207			1,117
Operating lease liabilities	197			—
Other liabilities	396			410
Equity:
Stockholders’ equity:
Preferred stock—$0.01 par value, 50,000,000 shares authorized	—			—
Common stock—$0.01 par value, 500,000,000 shares authorized, 2019—218,961,651 shares issued and 2018—233,800,903 shares issued	2			2
Paid-in capital	1,299			1,368
Retained earnings	2,111			2,463
Treasury stock—at cost, 2019—42,608 shares and 2018—10,982,408 shares	(2		)	(504		)
Accumulated other comprehensive loss	(344		)	(371		)
Total stockholders’ equity	3,066			2,958
Noncontrolling interest	2,752			2,773
Total equity	5,818			5,731
Total liabilities and equity	$	12,863		$	12,661

See accompanying Notes to Unaudited Consolidated Financial Statements.

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CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

	Common Stockholders
	$0.01 Par Value Common Stock		Treasury Stock			Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity			Noncontrolling Interest			Total Equity
	(in millions, except per share amounts)
Balance as of March 31, 2019	$	2	$	(64	)	$	1,311		$	2,047		$	(341	)	$	2,955		$	2,715		$	5,670
Net earnings	—		—			—			283			—			283			37			320
Other comprehensive loss	—		—			—			—			(3		)	(3		)	—			(3		)
Purchases of treasury stock	—		(118		)	—			—			—			(118		)	—			(118		)
Retirement of treasury stock	—		178			(25		)	(153		)	—			—			—			—
Issuance of $0.01 par value common stock under employee stock plans	—		2			2			—			—			4			—			4
Stock-based compensation expense	—		—			11			—			—			11			—			11
Cash dividends ($0.30 per share)	—		—			—			(66		)	—			(66		)	—			(66		)
Balance as of June 30, 2019	$	2	$	(2	)	$	1,299		$	2,111		$	(344	)	$	3,066		$	2,752		$	5,818
Balance as of December 31, 2018	$	2	$	(504	)	$	1,368		$	2,463		$	(371	)	$	2,958		$	2,773		$	5,731
Net earnings	—		—			—			373			—			373			65			438
Other comprehensive income	—		—			—			—			27			27			—			27
Purchases of treasury stock	—		(178		)	—			—			—			(178		)	—			(178		)
Retirement of treasury stock	—		682			(90		)	(592		)	—			—			—			—
Acquisition of treasury stock under employee stock plans	—		(4		)	—			—			—			(4		)	—			(4		)
Issuance of $0.01 par value common stock under employee stock plans	—		2			4			—			—			6			—			6
Stock-based compensation expense	—		—			17			—			—			17			—			17
Cash dividends ($0.60 per share)	—		—			—			(133		)	—			(133		)	—			(133		)
Distribution declared to noncontrolling interest	—		—			—			—			—			—			(86		)	(86		)
Balance as of June 30, 2019	$	2	$	(2	)	$	1,299		$	2,111		$	(344	)	$	3,066		$	2,752		$	5,818

(Continued)

CONSOLIDATED STATEMENTS OF EQUITY

(Continued) (Unaudited)

	Common Stockholders
	$0.01 Par Value Common Stock		Treasury Stock			Paid-In Capital				Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity			Noncontrolling Interests			Total Equity
	(in millions, except per share amounts)
Balance as of March 31, 2018	$	2	$	(1	)	$	1,405			$	2,436		$	(248	)	$	3,594		$	3,071		$	6,665
Net earnings	—		—			—				148			—			148			26			174
Other comprehensive loss	—		—			—				—			(61		)	(61		)	—			(61		)
Acquisition of treasury stock under employee stock plans	—		1			(1		)		—			—			—			—			—
Issuance of $0.01 par value common stock under employee stock plans	—		—			2				—			—			2			—			2
Stock-based compensation expense	—		—			5				—			—			5			—			5
Cash dividends ($0.30 per share)	—		—			—				(70		)	—			(70		)	—			(70		)
Acquisition of noncontrolling interests in TNCLP	—		—			(62		)		—			—			(62		)	(331		)	(393		)
Balance as of June 30, 2018	$	2	$	—		$	1,349		—	$	2,514		$	(309	)	$	3,556		$	2,766		$	6,322
Balance as of December 31, 2017	$	2	$	—		$	1,397			$	2,443		$	(263	)	$	3,579		$	3,105		$	6,684
Adoption of ASU No. 2014-09	—		—			—				(1		)	—			(1		)	—			(1		)
Adoption of ASU No. 2016-01	—		—			—				1			(1		)	—			—			—
Net earnings	—		—			—				211			—			211			51			262
Other comprehensive loss	—		—			—				—			(45		)	(45		)	—			(45		)
Acquisition of treasury stock under employee stock plans	—		—			(1		)		—			—			(1		)	—			(1		)
Issuance of $0.01 par value common stock under employee stock plans	—		—			4				—			—			4			—			4
Stock-based compensation expense	—		—			11				—			—			11			—			11
Cash dividends ($0.60 per share)	—		—			—				(140		)	—			(140		)	—			(140		)
Acquisition of noncontrolling interests in TNCLP	—		—			(62		)		—			—			(62		)	(331		)	(393		)
Distribution declared to noncontrolling interest	—		—			—				—			—			—			(59		)	(59		)
Balance as of June 30, 2018	$	2	$	—		$	1,349			$	2,514		$	(309	)	$	3,556		$	2,766		$	6,322

See accompanying Notes to Unaudited Consolidated Financial Statements.

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CF INDUSTRIES HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months ended   June 30,
	2019			2018
	(in millions)
Operating Activities:
Net earnings	$	438		$	262
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	440			434
Deferred income taxes	85			2
Stock-based compensation expense	17			11
Unrealized net loss (gain) on natural gas derivatives	1			(8		)
Unrealized loss on embedded derivative	2			1
Gain on disposal of property, plant and equipment	(45		)	—
Undistributed earnings of affiliate—net of taxes	(10		)	(3		)
Changes in:
Accounts receivable—net	(78		)	(34		)
Inventories	21			21
Accrued and prepaid income taxes	35			52
Accounts payable and accrued expenses	(94		)	(46		)
Customer advances	(128		)	(68		)
Other—net	9			(26		)
Net cash provided by operating activities	693			598
Investing Activities:
Additions to property, plant and equipment	(154		)	(145		)
Proceeds from sale of property, plant and equipment	63			16
Distributions received from unconsolidated affiliate	—			10
Other—net	—			1
Net cash used in investing activities	(91		)	(118		)
Financing Activities:
Financing fees	—			1
Dividends paid on common stock	(133		)	(140		)
Acquisition of noncontrolling interests in TNCLP	—			(388		)
Distributions to noncontrolling interests	(86		)	(59		)
Purchases of treasury stock	(209		)	—
Issuances of common stock under employee stock plans	6			4
Shares withheld for taxes	(4		)	(1		)
Net cash used in financing activities	(426		)	(583		)
Effect of exchange rate changes on cash and cash equivalents	—			(4		)
Increase (decrease) in cash and cash equivalents	176			(107		)
Cash and cash equivalents at beginning of period	682			835
Cash and cash equivalents at end of period	$	858		$	728

See accompanying Notes to Unaudited Consolidated Financial Statements.

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CF INDUSTRIES HOLDINGS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.   Background and Basis of Presentation

We are a leading global fertilizer and chemical company. Our 3,000 employees operate world-class manufacturing complexes in Canada, the United Kingdom and the United States. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers, farmers and industrial users. Our principal nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium. We serve our customers in North America through our production, storage, transportation and distribution network. We also reach a global customer base with exports from our Donaldsonville, Louisiana, plant, the world’s largest and most flexible nitrogen complex. Additionally, we move product to international destinations from our Verdigris, Oklahoma, facility, our Yazoo City, Mississippi, facility, our Billingham and Ince facilities in the United Kingdom, and from a joint venture ammonia facility in the Republic of Trinidad and Tobago in which we own a 50 percent interest.

All references to “CF Holdings,” “the Company,” “we,” “us” and “our” refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is only to CF Industries Holdings, Inc. itself and not its subsidiaries. All references to “CF Industries” refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc.

The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2018, in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments, that are necessary for the fair representation of the information for the periods presented. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period.

The accompanying unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related disclosures included in our 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019. The preparation of the unaudited interim consolidated financial statements requires us to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the unaudited consolidated financial statements and the reported revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, the cost of customer incentives, useful lives of property and identifiable intangible assets, the assumptions used in the evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income tax and valuation reserves, allowances for doubtful accounts receivable, the measurement of the fair values of investments for which markets are not active, assumptions used in the determination of the funded status and annual expense of defined benefit pension and other postretirement benefit plans and the assumptions used in the valuation of stock-based compensation awards granted to employees.

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CF INDUSTRIES HOLDINGS, INC.

2.   New Accounting Standards

Recently Adopted Pronouncements

On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in ASC Topic 840, Leases. This ASU requires lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, are required to provide greater insight into the extent of income and expense recognized and expected to be recognized from existing contracts. We elected the optional transition method provided under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option to adopt ASU No. 2016-02 as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The cumulative effect adjustment we recognized in the opening balance of retained earnings as of January 1, 2019 was not material. In addition, we elected the package of practical expedients permitted under the transition guidance within ASU No. 2016-02, which allows us to carry forward the historical lease determination, lease classification, and assessment of initial direct costs. See Note 13—Leases for additional information.

On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships in order to better portray the economic results of an entity’s risk management activities in its financial statements. The adoption of this ASU had no effect on our consolidated financial statements.

Recently Issued Pronouncements

In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU does not affect the accounting for the service element of a hosting arrangement that is a service contract. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2019 and can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We plan to adopt this ASU prospectively. We do not expect that our adoption of this ASU on January 1, 2020 will have a material impact on our consolidated financial statements. However, this guidance could have an effect on future financial results if significant new software involving a cloud computing agreement is implemented. In this case, a certain portion of the implementation costs could be deferred and expensed over the term of the cloud computing arrangement.

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CF INDUSTRIES HOLDINGS, INC.

3.   Revenue Recognition

We track our revenue by product and by geography. See Note 17—Segment Disclosures for our revenue by reportable segment, which are ammonia, granular urea, UAN, AN and Other. The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and six months ended June 30, 2019 and 2018:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Three months ended June 30, 2019
North America	$	443	$	413	$	346	$	54	$	68	$	1,324
Europe and other	30		20		23		72		33		178
Total revenue	$	473	$	433	$	369	$	126	$	101	$	1,502
Three months ended June 30, 2018
North America	$	349	$	345	$	290	$	49	$	64	$	1,097
Europe and other	25		15		49		75		39		203
Total revenue	$	374	$	360	$	339	$	124	$	103	$	1,300

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Six months ended June 30, 2019
North America	$	603	$	748	$	588	$	100	$	127	$	2,166
Europe and other	57		28		37		153		62		337
Total revenue	$	660	$	776	$	625	$	253	$	189	$	2,503
Six months ended June 30, 2018
North America	$	517	$	609	$	536	$	94	$	123	$	1,879
Europe and other	69		15		86		130		78		378
Total revenue	$	586	$	624	$	622	$	224	$	201	$	2,257

As of June 30, 2019 and December 31, 2018, we had $21 million and $149 million, respectively, in customer advances on our consolidated balance sheets. During the six months ended June 30, 2019 and 2018, substantially all of our customer advances that were recorded at the beginning of each respective period were recognized as revenue.

We offer cash incentives to certain customers based on the volume of their purchases over a certain period. These incentives do not provide an option to the customer for additional product. The balances of customer incentives accrued at June 30, 2019 and December 31, 2018 were not material.

We have certain customer contracts with performance obligations where if the customer does not take the required amount of product specified in the contract, then the customer is required to make a payment to us, which may vary based upon the terms and conditions of the applicable contract. As of June 30, 2019, excluding contracts with original durations of less than one year, and based on the minimum product tonnage to be sold and current market price estimates, our remaining performance obligations under these contracts are approximately $1.2 billion. We expect to recognize approximately 13% of these performance obligations as revenue in the remainder of 2019, approximately 45% as revenue during 2020 and 2021, approximately 28% as revenue during 2022 and 2023, and the remainder thereafter. If these customers do not fulfill their contractual obligations under such contracts, the legally enforceable minimum amount that they would pay to us under these contracts, in the aggregate, is approximately $264 million as of June 30, 2019. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially filled at December 31, 2018 will be satisfied in 2019.

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CF INDUSTRIES HOLDINGS, INC.

4.   Net Earnings Per Share

Net earnings per share were computed as follows:

	Three months ended   June 30,				Six months ended   June 30,
	2019		2018		2019		2018
	(in millions, except per share amounts)
Net earnings attributable to common stockholders	$	283	$	148	$	373	$	211
Basic earnings per common share:
Weighted-average common shares outstanding	221.1		234.0		222.2		233.9
Net earnings attributable to common stockholders	$	1.28	$	0.63	$	1.68	$	0.90
Diluted earnings per common share:
Weighted-average common shares outstanding	221.1		234.0		222.2		233.9
Dilutive common shares—stock options	1.2		0.9		1.2		0.9
Diluted weighted-average shares outstanding	222.3		234.9		223.4		234.8
Net earnings attributable to common stockholders	$	1.28	$	0.63	$	1.67	$	0.90

In the computation of diluted earnings per common share, potentially dilutive stock options are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock options not included in the computation of diluted earnings per common share were 1.5 million in each of the three and six months ended June 30, 2019 and 2.0 million in each of the three and six months ended June 30, 2018.

5.   Inventories

Inventories consist of the following:

	June 30, 2019		December 31, 2018
	(in millions)
Finished goods	$	250	$	272
Raw materials, spare parts and supplies	40		37
Total inventories	$	290	$	309

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CF INDUSTRIES HOLDINGS, INC.

6.   Property, Plant and Equipment—Net

Property, plant and equipment—net consists of the following:

	June 30, 2019		December 31, 2018
	(in millions)
Land	$	70	$	69
Machinery and equipment	12,178		12,127
Buildings and improvements	882		886
Construction in progress	275		225
Property, plant and equipment(1)	13,405		13,307
Less: Accumulated depreciation and amortization	5,069		4,684
Property, plant and equipment—net	$	8,336	$	8,623

_______________________________________________________________________________

⁽¹⁾  As of June 30, 2019 and December 31, 2018, we had property, plant and equipment that was accrued but unpaid of approximately $43 million and $48 million, respectively. As of June 30, 2018 and December 31, 2017, we had property, plant and equipment that was accrued but unpaid of $49 million and $46 million, respectively.

During the first quarter of 2019, we entered into an agreement to sell our Pine Bend dry bulk storage and logistics facility in Minnesota. In April 2019, we completed the sale, received proceeds of $55 million and recognized a pre-tax gain of $45 million. The gain is reflected in other operating—net in our consolidated statement of operations for the three and six months ended June 30, 2019.

Depreciation and amortization related to property, plant and equipment was $247 million and $430 million for the three and six months ended June 30, 2019, respectively, and $236 million and $421 million for the three and six months ended June 30, 2018, respectively.

Plant turnarounds—Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred. The following is a summary of capitalized plant turnaround costs:

	Six months ended   June 30,
	2019			2018
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	252		$	208
Additions	22			41
Depreciation	(57		)	(56		)
Effect of exchange rate changes	2			(2		)
Ending balance	$	219		$	191

Scheduled replacements and overhauls of plant machinery and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized.

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CF INDUSTRIES HOLDINGS, INC.

7.  Goodwill and Other Intangible Assets

The following table shows the carrying amount of goodwill by reportable segment as of June 30, 2019 and December 31, 2018:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Balance as of December 31, 2018	$	586	$	828	$	576	$	292	$	71	$	2,353
Effect of exchange rate changes(1)	—		—		—		—		—		—
Balance as of June 30, 2019	$	586	$	828	$	576	$	292	$	71	$	2,353

_______________________________________________________________________________

⁽¹⁾  The effect of exchange rate changes on the carrying amount of goodwill was immaterial for the six months ended June 30, 2019.

All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
	(in millions)
Customer relationships	$	127	$	(40	)	$	87	$	127	$	(37	)	$	90
TerraCair brand	—		—			—		10		(10		)	—
Trade names	30		(6		)	24		30		(5		)	25
Total intangible assets	$	157	$	(46	)	$	111	$	167	$	(52	)	$	115

Our intangible assets are being amortized over a weighted-average life of approximately 20 years. Amortization expense of our identifiable intangible assets was $2 million and $4 million for the three and six months ended June 30, 2019, respectively, and $3 million and $5 million for the three and six months ended June 30, 2018, respectively. The gross carrying amount and accumulated amortization of our intangible assets are also impacted by the effect of exchange rate changes. Total estimated amortization expense for the remainder of 2019 and each of the five succeeding fiscal years is as follows:

	Estimated Amortization Expense
	(in millions)
Remainder of 2019	$	4
2020	8
2021	8
2022	8
2023	8
2024	8

8.  Equity Method Investment

We have a 50% ownership interest in Point Lisas Nitrogen Limited (PLNL), which operates an ammonia production facility in the Republic of Trinidad and Tobago. We include our share of the net earnings from this equity method investment as an element of earnings from operations because PLNL provides additional production to our operations and is integrated with our other supply chain and sales activities in the ammonia segment.

As of June 30, 2019, the total carrying value of our equity method investment in PLNL was $101 million, $47 million more than our share of PLNL’s book value. The excess is attributable to the purchase accounting impact of our acquisition of the investment in PLNL and reflects the revaluation of property, plant and equipment. The increased basis for property, plant and equipment is being amortized over a remaining period of approximately 14 years. Our equity in earnings of PLNL is different from our ownership interest in income reported by PLNL due to amortization of this basis difference.

We have transactions in the normal course of business with PLNL reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. Our ammonia purchases from PLNL totaled $12 million and $34 million

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CF INDUSTRIES HOLDINGS, INC.

for the three and six months ended June 30, 2019, respectively, and $9 million and $38 million for the three and six months ended June 30, 2018, respectively.

The Trinidadian tax authority (the Board of Inland Revenue) has issued PLNL a tax assessment with respect to tax years 2011 and 2012 in the aggregate amount of approximately $12 million, in addition to interest and penalties with respect to tax years 2011 and 2012 in the aggregate amount of approximately $22 million, for alleged underpayment of withholding taxes on distributions made by PLNL to its owners. Since we own a 50% interest in PLNL, our effective share of any assessment that is determined to be a liability of PLNL would be 50%, which would be reflected as a reduction in our equity in earnings of PLNL. The Board of Inland Revenue has not provided PLNL with the legal or factual basis for the assessment. As a result, PLNL cannot assess the likelihood of the outcome of this matter and we cannot assess the potential foreign tax credit we may be eligible for, if the withholding tax amount was determined to be a liability of PLNL.

PLNL operates an ammonia plant that relies on natural gas supplied, under a Gas Sales Contract (the NGC Contract), by The National Gas Company of Trinidad and Tobago Limited (NGC). PLNL experienced past curtailments in the supply of natural gas from NGC, which reduced historical ammonia production at PLNL. The NGC Contract had an initial expiration date of September 2018 and was extended on the same terms until September 2023. Any NGC commitment to supply gas beyond 2023 will be based on new agreements. In May 2018, the NGC and PLNL reached a settlement of an arbitration proceeding regarding PLNL’s claims for damages due to the natural gas supply curtailments. The net after-tax impact of the settlement reached between NGC and PLNL that is recognized in our consolidated statements of operations for the three and six months ended June 30, 2018 was an increase in our equity in earnings of operating affiliates of approximately $19 million.

9.  Fair Value Measurements

Our cash and cash equivalents and other investments consist of the following:

	June 30, 2019
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(in millions)
Cash	$	52	$	—	$	—	$	52
Cash equivalents:
U.S. and Canadian government obligations	794		—		—		794
Other debt securities	12		—		—		12
Total cash and cash equivalents	$	858	$	—	$	—	$	858
Nonqualified employee benefit trusts	17		2		—		19

	December 31, 2018
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(in millions)
Cash	$	34	$	—	$	—	$	34
Cash equivalents:
U.S. and Canadian government obligations	623		—		—		623
Other debt securities	25		—		—		25
Total cash and cash equivalents	$	682	$	—	$	—	$	682
Nonqualified employee benefit trusts	17		2		—		19

Under our short-term investment policy, we may invest our cash balances, either directly or through mutual funds, in several types of investment-grade securities, including notes and bonds issued by governmental entities or corporations. Securities issued by governmental entities include those issued directly by the U.S. and Canadian federal governments; those issued by state, local or other governmental entities; and those guaranteed by entities affiliated with governmental entities.

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CF INDUSTRIES HOLDINGS, INC.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present assets and liabilities included in our consolidated balance sheets as of June 30, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:

	June 30, 2019
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in millions)
Cash equivalents	$	806		$	806	$	—		$	—
Nonqualified employee benefit trusts	19			19		—			—
Embedded derivative liability	(23		)	—		(23		)	—

	December 31, 2018
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in millions)
Cash equivalents	$	648		$	648	$	—		$	—
Nonqualified employee benefit trusts	19			19		—			—
Embedded derivative liability	(21		)	—		(21		)	—

Cash Equivalents

As of June 30, 2019 and December 31, 2018, our cash equivalents consisted primarily of U.S. and Canadian government obligations and money market mutual funds that invest in U.S. government obligations and other investment-grade securities.

Nonqualified Employee Benefit Trusts

We maintain trusts associated with certain nonqualified supplemental pension plans. The fair values of the trust assets are based on daily quoted prices in an active market, which represents the net asset values of the shares held in the trusts, and are included on our consolidated balance sheets in other assets. Debt securities are accounted for as available-for-sale securities. Changes in the fair value of equity securities in the trust assets are recognized through earnings.

Embedded Derivative Liability

Under the terms of our strategic venture with CHS Inc. (CHS), if our credit rating as determined by two of three specified credit rating agencies is below certain levels, we are required to make a non-refundable yearly payment of $5 million to CHS. Since our credit ratings were below certain levels in 2016, 2017 and 2018, we made a payment of $5 million to CHS in the fourth quarter of each year. These payments will continue on a yearly basis until the earlier of the date that our credit rating is upgraded to or above certain levels by two of the three specified credit rating agencies or February 1, 2026. This obligation is recognized on our consolidated balance sheets as an embedded derivative. As of June 30, 2019 and December 31, 2018, the embedded derivative liability of $23 million and $21 million, respectively, is included in other current liabilities and other liabilities on our consolidated balance sheets. Included in other operating—net in our consolidated statement of operations for the six months ended June 30, 2019 and 2018 is a net loss of $2 million and $1 million, respectively.

The inputs into the fair value measurement include the probability of future upgrades and downgrades of our credit rating based on historical credit rating movements of other public companies and the discount rates to be applied to potential annual payments based on applicable credit spreads of other public companies at different credit rating levels. Based on these inputs, our fair value measurement is classified as Level 2.

See Note 14—Noncontrolling Interests for additional information regarding our strategic venture with CHS.

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CF INDUSTRIES HOLDINGS, INC.

Financial Instruments

The carrying amount and estimated fair value of our financial instruments are as follows:

	June 30, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Long-term debt	$	4,701	$	4,669	$	4,698	$	4,265

The fair value of our long-term debt was based on quoted prices for identical or similar liabilities in markets that are not active or valuation models in which all significant inputs and value drivers are observable and, as a result, they are classified as Level 2 inputs.

The carrying amounts of cash and cash equivalents, as well as instruments included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair values because of their short-term maturities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We also have assets and liabilities that may be measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment, when there is allocation of purchase price in an acquisition or when a new liability is being established that requires fair value measurement. These include long-lived assets, goodwill and other intangible assets and investments in unconsolidated subsidiaries, such as equity method investments, which may be written down to fair value as a result of impairment. The fair value measurements related to each of these rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets. Since certain of the Company’s assumptions would involve inputs that are not observable, these fair values would reside within Level 3 of the fair value hierarchy.

10.   Income Taxes

For the three months ended June 30, 2019, we recorded an income tax provision of $102 million on pre-tax income of $422 million, or an effective tax rate of 24.2%, compared to an income tax provision of $44 million on pre-tax income of $218 million, or an effective tax rate of 20.2%, for the three months ended June 30, 2018.

For the six months ended June 30, 2019, our income tax provision includes an incentive tax credit from the State of Louisiana of $30 million, net of federal income tax, related to certain capital projects at our Donaldsonville, Louisiana complex.

Our effective tax rate is also impacted by earnings attributable to noncontrolling interest in CF Industries Nitrogen, LLC (CFN), as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interest. Our effective tax rate for the three months ended June 30, 2019 of 24.2%, which is based on pre-tax income of $422 million, would be 26.5% exclusive of the earnings attributable to the noncontrolling interests of $37 million. Our effective tax rate for the three months ended June 30, 2018 of 20.2%, which is based on pre-tax income of $218 million, would be 23.0% exclusive of the earnings attributable to the noncontrolling interests of $26 million. See Note 14—Noncontrolling Interests for additional information.

On April 2, 2018, we purchased all of the outstanding publicly traded common units of TNCLP. Our effective tax rate in the second quarter of 2018 is impacted by a $20 million reduction to our deferred tax liability due to the change in our effective state income tax rate as a result of the implementation of legal entity structure changes related to the acquisition. See Note 14—Noncontrolling Interests for additional information.

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CF INDUSTRIES HOLDINGS, INC.

11.   Interest Expense

Details of interest expense are as follows:

	Three months ended   June 30,					Six months ended   June 30,
	2019			2018		2019			2018
	(in millions)
Interest on borrowings(1)	$	57		$	57	$	114		$	114
Fees on financing agreements(1)	3			4		6			7
Interest on tax liabilities	—			—		—			1
Interest capitalized	(1		)	—		(1		)	(1		)
Total interest expense	$	59		$	61	$	119		$	121

_______________________________________________________________________________

⁽¹⁾  See Note 12—Financing Agreements for additional information.

12.  Financing Agreements

Revolving Credit Agreement

We have a senior secured revolving credit agreement (the Revolving Credit Agreement) providing for a revolving credit facility of up to $750 million with a maturity of September 18, 2020. The Revolving Credit Agreement includes a letter of credit sub-limit of $125 million. Borrowings under the Revolving Credit Agreement may be used for working capital and general corporate purposes. CF Industries, the borrower under the Revolving Credit Agreement, may also designate as borrowers one or more wholly owned subsidiaries that are organized in the United States or any state thereof or the District of Columbia.

Borrowings under the Revolving Credit Agreement may be denominated in dollars, Canadian dollars, euros and British pounds, and bear interest at a per annum rate equal to an applicable eurocurrency rate or base rate plus, in either case, a specified margin, and the borrowers are required to pay an undrawn commitment fee on the undrawn portion of the commitments under the Revolving Credit Agreement and customary letter of credit fees. The specified margin and the amount of the commitment fee depend on CF Holdings’ credit rating at the time.

The guarantors under the Revolving Credit Agreement are currently comprised of CF Holdings and CF Holdings’ wholly owned subsidiaries CF Industries Enterprises, LLC (CFE), CF Industries Sales, LLC (CFS), CF USA Holdings, LLC (CF USA) and CF Industries Distribution Facilities, LLC (CFIDF).

As of June 30, 2019, we had excess borrowing capacity under the Revolving Credit Agreement of $750 million and no outstanding letters of credit. There were no borrowings outstanding under the Revolving Credit Agreement as of June 30, 2019 or December 31, 2018, or during the six months ended June 30, 2019.

The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants, including financial covenants. As of June 30, 2019, we were in compliance with all covenants under the Revolving Credit Agreement.

Letters of Credit

In addition to the letter of credit capacity under the Revolving Credit Agreement, as described above, we have also entered into a bilateral agreement with capacity to issue letters of credit up to $145 million (reflecting an increase of $20 million in January 2019). As of June 30, 2019, approximately $131 million of letters of credit were outstanding under this agreement.

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CF INDUSTRIES HOLDINGS, INC.

Senior Notes

Long-term debt, including current maturities of long-term debt, presented on our consolidated balance sheets as of June 30, 2019 and December 31, 2018 consisted of the following Public Senior Notes (unsecured) and Senior Secured Notes issued by CF Industries:

	Effective Interest Rate	June 30, 2019				December 31, 2018
		Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
		(in millions)
Public Senior Notes:
7.125% due May 2020	7.529%	$	500	$	498	$	500	$	497
3.450% due June 2023	3.562%	750		747		750		747
5.150% due March 2034	5.279%	750		740		750		740
4.950% due June 2043	5.031%	750		742		750		741
5.375% due March 2044	5.465%	750		741		750		741
Senior Secured Notes:
3.400% due December 2021	3.782%	500		495		500		495
4.500% due December 2026	4.759%	750		738		750		737
Total long-term debt		$	4,750	$	4,701	$	4,750	$	4,698
Less: Current maturities of long-term debt		500		498		—		—
Long-term debt, net of current maturities		$	4,250	$	4,203	$	4,750	$	4,698

_______________________________________________________________________________

⁽¹⁾  Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $11 million as of both June 30, 2019 and December 31, 2018, and total deferred debt issuance costs were $38 million and $41 million as of June 30, 2019 and December 31, 2018, respectively. 

Public Senior Notes

Under the indentures (including the applicable supplemental indentures) governing the senior notes due 2020, 2023, 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings and CF Holdings’ wholly owned subsidiaries CFE, CFS, CF USA and CFIDF. CFE, CFS, CF USA and CFIDF became subsidiary guarantors of the Public Senior Notes as a result of their becoming guarantors under the Revolving Credit Agreement. Interest on the Public Senior Notes is payable semiannually, and the Public Senior Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices.

Senior Secured Notes

On November 21, 2016, CF Industries issued $500 million aggregate principal amount of 3.400% senior secured notes due 2021 (the 2021 Notes) and $750 million aggregate principal amount of 4.500% senior secured notes due 2026 (the 2026 Notes, and together with the 2021 Notes, the Senior Secured Notes). CF Holdings and the subsidiary guarantors of the Public Senior Notes are also guarantors of the Senior Secured Notes. Interest on the Senior Secured Notes is payable semiannually on December 1 and June 1, and the Senior Secured Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices.

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CF INDUSTRIES HOLDINGS, INC.

13.   Leases

Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate the present value represents our secured incremental borrowing rate and is calculated based on the treasury yield curve commensurate with the term of each lease, and a spread representative of our secured borrowing costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

For operating leases, rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis. For finance leases, if any, ROU assets are amortized over the lease term on a straight-line basis and interest expense is recognized using the effective interest method and based on the lease liability at period end. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. We have made an accounting policy election to not include leases with an initial term of 12 months or less on the balance sheet.

We have operating leases for certain property and equipment under various noncancelable agreements, the most significant of which are rail car leases and barge tow charters for the distribution of our products. The rail car leases currently have minimum terms ranging from one to eleven years and the barge tow charter commitments range from one to seven years. Our rail car leases and barge tow charters commonly contain provisions for automatic annual renewal that can extend the lease term unless canceled by either party. We also have operating leases for terminal and warehouse storage for our distribution system, some of which contain minimum throughput requirements. The storage agreements contain minimum terms generally ranging from one to five years and commonly contain provisions for automatic annual renewal thereafter unless canceled by either party. The renewal provisions for our rail car leases, barge tow charters and terminal and warehouse storage agreements are not reasonably certain to be exercised. For all rail car leases, barge tow charters, and terminal and warehouse storage agreements, we have made an accounting policy election to not separate lease and non-lease components, such as operating costs and maintenance, due to the unavailability of sufficient data. As a result, the non-lease components are included in the ROU assets and lease liabilities on our balance sheet.

The components of lease costs were as follows:

	Three months ended   June 30, 2019		Six months ended   June 30, 2019
	(in millions)
Operating lease cost	$	24	$	47
Short-term lease cost	7		14
Total lease cost	$	31	$	61

Supplemental cash flow information related to leases was as follows:

	Six months ended   June 30, 2019
	(in millions)
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities	$	42
ROU assets obtained in exchange for operating lease obligations	32

Supplemental balance sheet information related to leases was as follows:

	June 30, 2019
	(in millions)
Operating lease ROU assets	$	281
Current operating lease liabilities	$	89
Operating lease liabilities	197
Total operating lease liabilities	$	286

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CF INDUSTRIES HOLDINGS, INC.

	June 30, 2019
Operating leases
Weighted average remaining lease term	5 years
Weighted average discount rate(1)	4.9	%

_______________________________________________________________________________

⁽¹⁾  Upon adoption of the new lease accounting standard, discount rates used for existing leases were established at January 1, 2019. See Note 2—New Accounting Standards.

The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of June 30, 2019.

	Operating lease payments
	(in millions)
Remainder of 2019	$	46
2020	85
2021	64
2022	42
2023	28
Thereafter	57
Total lease payments	322
Less: imputed interest	(36		)
Total operating lease liabilities	286
Less: Current operating lease liabilities	(89		)
Long-term operating lease liabilities	$	197

As of June 30, 2019, we have entered into additional leases that had not yet commenced. These leases have been excluded from total operating lease liabilities and will commence in fiscal years 2019 and 2020 with future minimum payments of $18 million and lease terms ranging from five to ten years.

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, the future minimum lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows:

	Operating lease payments
	(in millions)
2019	$	93
2020	80
2021	59
2022	41
2023	28
Thereafter	62
Total lease payments	$	363

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CF INDUSTRIES HOLDINGS, INC.

14.   Noncontrolling Interests

A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to noncontrolling interests in our consolidated balance sheets is provided below.

	2019			2018
	CFN			CFN			TNCLP			Total
	(in millions)
Noncontrolling interests:
Balance as of January 1	$	2,773		$	2,772		$	333		$	3,105
Earnings attributable to noncontrolling interests	65			43			8			51
Declaration of distributions payable	(86		)	(49		)	(10		)	(59		)
Purchase of the TNCLP Public Units	—			—			(331		)	(331		)
Balance as of June 30	$	2,752		$	2,766		$	—		$	2,766
Distributions payable to noncontrolling interests:
Balance as of January 1	$	—		$	—		$	—		$	—
Declaration of distributions payable	86			49			10			59
Distributions to noncontrolling interests	(86		)	(49		)	(10		)	(59		)
Balance as of June 30	$	—		$	—		$	—		$	—

CF Industries Nitrogen, LLC (CFN)

We have a strategic venture with CHS under which they own an equity interest in CFN, a subsidiary of CF Holdings, which represents approximately 11% of the membership interests of CFN. We own the remaining membership interests. Under the terms of CFN’s limited liability company agreement, each member’s interest will reflect, over time, the impact of the profitability of CFN and any member contributions made to, and distributions received from, CFN. For financial reporting purposes, the assets, liabilities and earnings of the strategic venture are consolidated into our financial statements. CHS’ interest in the strategic venture is recorded in noncontrolling interests in our consolidated financial statements. CHS also receives deliveries pursuant to a supply agreement under which CHS has the right to purchase annually from CFN up to approximately 1.1 million tons of granular urea and 580,000 tons of UAN at market prices. As a result of its equity interest in CFN, CHS is entitled to semi-annual cash distributions from CFN. We are also entitled to semi-annual cash distributions from CFN. The amounts of distributions from CFN to us and CHS are based generally on the profitability of CFN and determined based on the volume of granular urea and UAN sold by CFN to us and CHS pursuant to supply agreements, less a formula driven amount based primarily on the cost of natural gas used to produce the granular urea and UAN, and adjusted for the allocation of items such as operational efficiencies and overhead amounts. Additionally, under the terms of the strategic venture, we recognized an embedded derivative related to our credit rating. See Note 9—Fair Value Measurements for additional information.

On July 31, 2019, the CFN Board of Managers approved semi-annual distribution payments for the distribution period ended June 30, 2019 in accordance with CFN’s limited liability company agreement. On July 31, 2019, CFN distributed $100 million to CHS for the distribution period ended June 30, 2019.

Terra Nitrogen Company, L.P. (TNCLP)

On February 7, 2018, we announced that, in accordance with the terms of TNCLP’s First Amended and Restated Agreement of Limited Partnership (as amended by Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership, the TNCLP Agreement of Limited Partnership), Terra Nitrogen GP Inc. (TNGP), the sole general partner of TNCLP and an indirect wholly owned subsidiary of CF Holdings, elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of TNCLP (the TNCLP Public Units). On April 2, 2018, TNGP completed its purchase of the TNCLP Public Units (the Purchase) for an aggregate cash purchase price of $388 million, at which time we recognized a reduction in paid-in capital of $62 million; a deferred tax liability of $5 million; and the removal of the TNCLP noncontrolling interests, as shown in the table above. Upon completion of the Purchase, CF Holdings owned, through its subsidiaries, 100 percent of the general and limited partnership interests of TNCLP.

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CF INDUSTRIES HOLDINGS, INC.

Prior to April 2, 2018, TNCLP was a master limited partnership that owned a nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma. We owned approximately 75.3% of TNCLP through general and limited partnership interests and outside investors owned the remaining approximately 24.7% of the limited partnership interests. For financial reporting purposes, the assets, liabilities and earnings of the partnership were consolidated into our financial statements. The outside investors’ limited partnership interests in TNCLP were recorded in noncontrolling interests in our consolidated financial statements. The noncontrolling interest represented the noncontrolling unitholders’ interest (prior to the Purchase) in the earnings and equity of TNCLP. Affiliates of CF Industries were required to purchase all of TNCLP’s fertilizer products at market prices as defined in the Amendment to the General and Administrative Services and Product Offtake Agreement, dated September 28, 2010.

Prior to April 2, 2018, TNCLP made cash distributions to the general and limited partners based on formulas defined within the TNCLP Agreement of Limited Partnership. Cash available for distribution (Available Cash) was defined in the TNCLP Agreement of Limited Partnership generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the general partner determined in its reasonable discretion to be necessary or appropriate. Changes in working capital affected Available Cash, as increases in the amount of cash invested in working capital items (such as increases in receivables or inventory and decreases in accounts payable) reduced Available Cash, while declines in the amount of cash invested in working capital items increased Available Cash. Cash distributions to the limited partners and general partner varied depending on the extent to which the cumulative distributions exceeded certain target threshold levels set forth in the TNCLP Agreement of Limited Partnership.

15.   Stockholders’ Equity

Treasury Stock

On August 1, 2018, our Board of Directors (the Board) authorized the repurchase of up to $500 million of CF Holdings common stock through June 30, 2020 (the 2018 Share Repurchase Program). In 2018, we completed the 2018 Share Repurchase Program with the repurchase of 10.9 million shares for $500 million, of which $33 million was accrued and unpaid at December 31, 2018. In February 2019, we retired all 10.9 million shares that were repurchased under the 2018 Share Repurchase Program.

On February 13, 2019, the Board authorized the repurchase of up to $1 billion of CF Holdings common stock through December 31, 2021 (the 2019 Share Repurchase Program). Repurchases under the 2019 Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions, block transactions or otherwise. The manner, timing and amount of repurchases will be determined by our management based on the evaluation of market conditions, stock price, and other factors. In the six months ended June 30, 2019, we repurchased approximately 4.2 million shares for $178 million, of which $2 million was accrued and unpaid at June 30, 2019. In June 2019, we retired approximately 4.2 million shares that were repurchased under the 2019 Share Repurchase Program. At June 30, 2019, we held 42,608 shares of treasury stock.

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CF INDUSTRIES HOLDINGS, INC.

Accumulated Other Comprehensive Income (Loss)

Changes to accumulated other comprehensive income (loss) are as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) on Securities			Unrealized Gain on Derivatives		Defined Benefit Plans			Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance as of December 31, 2017	$	(145	)	$	1		$	4	$	(123	)	$	(263	)
Adoption of ASU 2016-01	—			(1		)	—		—			(1		)
Unrealized loss	—			(1		)	—		—			(1		)
Gain arising during the period	—			—			—		5			5
Reclassification to earnings(1)	—			—			—		1			1
Effect of exchange rate changes and deferred taxes	(50		)	—			—		—			(50		)
Balance as of June 30, 2018	$	(195	)	$	(1	)	$	4	$	(117	)	$	(309	)
Balance as of December 31, 2018	$	(250	)	$	—		$	5	$	(126	)	$	(371	)
Gain arising during the period	—			—			—		5			5
Reclassification to earnings(1)	—			—			—		(1		)	(1		)
Effect of exchange rate changes and deferred taxes	24			—			—		(1		)	23
Balance as of June 30, 2019	$	(226	)	$	—		$	5	$	(123	)	$	(344	)

____________________________________________________________________________

⁽¹⁾  Reclassifications out of accumulated other comprehensive income (loss) to earnings during the three and six months ended June 30, 2019 and 2018 were not material.

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CF INDUSTRIES HOLDINGS, INC.

16.  Contingencies

Litigation

West Fertilizer Co.

On April 17, 2013, there was a fire and explosion at the West Fertilizer Co. fertilizer storage and distribution facility in West, Texas. According to published reports, 15 people were killed and approximately 200 people were injured in the incident, and the fire and explosion damaged or destroyed a number of homes and buildings around the facility. Various subsidiaries of CF Industries Holdings, Inc. (the CF Entities) were named as defendants along with other companies in lawsuits filed in 2013, 2014 and 2015 in the District Court of McLennan County, Texas by the City of West, individual residents of the County and other parties seeking recovery for damages allegedly sustained as a result of the explosion. The cases were consolidated for discovery and pretrial proceedings in the District Court of McLennan County under the caption “In re: West Explosion Cases.” The two-year statute of limitations expired on April 17, 2015. As of that date, over 400 plaintiffs had filed claims, including at least 9 entities, 325 individuals, and 80 insurance companies. Plaintiffs allege various theories of negligence, strict liability, and breach of warranty under Texas law. Although we do not own or operate the facility or directly sell our products to West Fertilizer Co., products that the CF Entities manufactured and sold to others were delivered to the facility and may have been stored at the West facility at the time of the incident.

The Court granted in part and denied in part the CF Entities’ Motions for Summary Judgment in August 2015. Over two hundred cases have been resolved pursuant to confidential settlements that have been or we expect will be fully funded by insurance. The remaining cases are in various stages of discovery and pre-trial proceedings. The next group of cases was reset for trial beginning on September 16, 2019. We believe we have strong legal and factual defenses and intend to continue defending the CF Entities vigorously in the pending lawsuits. The Company cannot provide a range of reasonably possible loss due to the lack of damages discovery for many of the remaining claims and the uncertain nature of this litigation, including uncertainties around the potential allocation of responsibility by a jury to other defendants or responsible third parties. The recognition of a potential loss in the future in the West Fertilizer Co. litigation could negatively affect our results in the period of recognition. However, based upon currently available information, including available insurance coverage, we do not believe that this litigation will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Other Litigation

From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business, including proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Based on the information available as of the date of this filing, we believe that the ultimate outcome of these routine matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Environmental

From time to time, we receive notices from governmental agencies or third parties alleging that we are a potentially responsible party at certain cleanup sites under CERCLA or other environmental cleanup laws. In 2011, we received a notice from the Idaho Department of Environmental Quality (IDEQ) that alleged that we were a potentially responsible party for the cleanup of a former phosphate mine site we owned in the late 1950s and early 1960s located in Georgetown Canyon, Idaho. The current property owner and a former mining contractor received similar notices for the site. In 2014, we and the current property owner entered into a Consent Order with IDEQ and the U.S. Forest Service to conduct a remedial investigation and feasibility study of the site. In 2015, we and several other parties received a notice that the U.S. Department of the Interior and other trustees intend to undertake a natural resource damage assessment for 17 former phosphate mines in southeast Idaho, one of which is the former Georgetown Canyon mine. We are not able to estimate at this time our potential liability, if any, with respect to the cleanup of the site or a possible claim for natural resource damages. However, based on currently available information, we do not expect the remedial or financial obligations to which we may be subject involving this or other cleanup sites will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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CF INDUSTRIES HOLDINGS, INC.

17.  Segment Disclosures

Our reportable segments consist of ammonia, granular urea, UAN, AN and Other. These segments are differentiated by products. Our management uses gross margin to evaluate segment performance and allocate resources. Total other operating costs and expenses (consisting of selling, general and administrative expenses and other operating—net) and non-operating expenses (interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management.

Our assets, with the exception of goodwill, are not monitored by or reported to our chief operating decision maker by segment; therefore, we do not present total assets by segment. Goodwill by segment is presented in Note 7—Goodwill and Other Intangible Assets.

Segment data for sales, cost of sales and gross margin for the three and six months ended June 30, 2019 and 2018 are presented in the tables below.

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Three months ended June 30, 2019
Net sales	$	473	$	433	$	369	$	126	$	101	$	1,502
Cost of sales	300		251		277		94		81		1,003
Gross margin	$	173	$	182	$	92	$	32	$	20	499
Total other operating costs and expenses											25
Equity in earnings of operating affiliate											1
Operating earnings											$	475
Three months ended June 30, 2018
Net sales	$	374	$	360	$	339	$	124	$	103	$	1,300
Cost of sales	272		255		258		117		86		988
Gross margin	$	102	$	105	$	81	$	7	$	17	312
Total other operating costs and expenses											56
Equity in earnings of operating affiliate											18
Operating earnings											$	274

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Six months ended June 30, 2019
Net sales	$	660	$	776	$	625	$	253	$	189	$	2,503
Cost of sales	466		479		472		208		159		1,784
Gross margin	$	194	$	297	$	153	$	45	$	30	719
Total other operating costs and expenses											87
Equity in earnings of operating affiliate											8
Operating earnings											$	640
Six months ended June 30, 2018
Net sales	$	586	$	624	$	622	$	224	$	201	$	2,257
Cost of sales	460		444		488		191		172		1,755
Gross margin	$	126	$	180	$	134	$	33	$	29	502
Total other operating costs and expenses											92
Equity in earnings of operating affiliate											25
Operating earnings											$	435

_______________________________________________________________________________

⁽¹⁾  The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results.

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CF INDUSTRIES HOLDINGS, INC.

18.   Condensed Consolidating Financial Statements

The following condensed consolidating financial information is presented in accordance with SEC Regulation S-X Rule 3-10, Financial statements of guarantors and issuers of guaranteed securities registered or being registered, and relates to (i) the senior notes due 2020, 2023, 2034, 2043 and 2044 (described in Note 12—Financing Agreements and referred to in this report as the Public Senior Notes) issued by CF Industries, Inc. (CF Industries), a 100% owned subsidiary of CF Industries Holdings, Inc. (Parent), and guarantees of the Public Senior Notes by Parent and by CFE, CFS, CF USA and CFIDF (the Subsidiary Guarantors), which are 100% owned subsidiaries of Parent, and (ii) debt securities of CF Industries (Other Debt Securities), and guarantees thereof by Parent and the Subsidiary Guarantors, that may be offered and sold from time to time under registration statements that may be filed by Parent, CF Industries and the Subsidiary Guarantors with the SEC.

In the event that a subsidiary of Parent, other than CF Industries, becomes a borrower or a guarantor under the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), such subsidiary would be required to become a guarantor of the Public Senior Notes, provided that such requirement will no longer apply with respect to the Public Senior Notes due 2023, 2034, 2043 and 2044 following the repayment of the Public Senior Notes due 2020 or the subsidiaries of Parent, other than CF Industries, otherwise becoming no longer subject to such a requirement to guarantee the Public Senior Notes due 2020. The Subsidiary Guarantors became guarantors of the Public Senior Notes as a result of this requirement.

All of the guarantees of the Public Senior Notes are, and we have assumed for purposes of this presentation of condensed consolidating financial information that the guarantees of any Other Debt Securities would be, full and unconditional (as such term is defined in SEC Regulation S-X Rule 3-10(h)) and joint and several. The guarantee of a Subsidiary Guarantor will be automatically released with respect to a series of the Public Senior Notes (1) upon the release, discharge or termination of such Subsidiary Guarantor’s guarantee of the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), (2) upon legal defeasance with respect to the Public Senior Notes of such series or satisfaction and discharge of the indenture with respect to such series of Public Senior Notes or (3) in the case of the Public Senior Notes due 2023, 2034, 2043 and 2044, upon the discharge, termination or release of, or the release of such Subsidiary Guarantor from its obligations under, such Subsidiary Guarantor’s guarantee of the Public Senior Notes due 2020, including, without limitation, any such discharge, termination or release as a result of retirement, discharge or legal or covenant defeasance of, or satisfaction and discharge of the supplemental indenture governing, the Public Senior Notes due 2020.

For purposes of the presentation of condensed consolidating financial information, the subsidiaries of Parent other than CF Industries and the Subsidiary Guarantors are referred to as the Non-Guarantors.

Presented below are condensed consolidating statements of operations and statements of comprehensive income for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors for the three and six months ended June 30, 2019 and 2018, condensed consolidating statements of cash flows for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors for the six months ended June 30, 2019 and 2018, and condensed consolidating balance sheets for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors as of June 30, 2019 and December 31, 2018. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, comprehensive income or cash flows of Parent, CF Industries, the Subsidiary Guarantors or the Non-Guarantors on a stand-alone basis.

In these condensed consolidating financial statements, investments in subsidiaries are presented under the equity method, in which our investments are recorded at cost and adjusted for our ownership share of a subsidiary’s cumulative results of operations, distributions and other equity changes, and the eliminating entries reflect primarily intercompany transactions such as sales, accounts receivable and accounts payable and the elimination of equity investments and earnings of subsidiaries. As of June 30, 2019, two of our consolidated entities have made elections to be taxed as partnerships for U.S. federal income tax purposes and are included in the Non-Guarantors column. Due to the partnership tax treatment, these subsidiaries do not record taxes on their financial statements. The tax provision pertaining to the income of these partnerships, plus applicable deferred tax balances are reflected on the financial statements of the parent company owner that is included in the Subsidiary Guarantors column in the following financial information. Liabilities related to benefit plan obligations are reflected on the legal entity that funds the obligation, while the benefit plan expense is included on the legal entity to which the employee provides services.

24

CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Statement of Operations

	Three months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	96		$	1,262		$	989		$	(845	)	$	1,502
Cost of sales	—			69			1,052			725			(843		)	1,003
Gross margin	—			27			210			264			(2		)	499
Selling, general and administrative expenses	1			(2		)	46			19			(2		)	62
Other operating—net	—			3			(40		)	—			—			(37		)
Total other operating costs and expenses	1			1			6			19			(2		)	25
Equity in earnings of operating affiliates	—			—			—			1			—			1
Operating (loss) earnings	(1		)	26			204			246			—			475
Interest expense	1			62			—			—			(4		)	59
Interest expense—mandatorily redeemable preferred shares	—			—			—			1			(1		)	—
Interest income	—			—			(5		)	(4		)	5			(4		)
Net earnings of wholly owned subsidiaries	(285		)	(314		)	(199		)	—			798			—
Other non-operating—net	—			—			(1		)	(1		)	—			(2		)
Earnings before income taxes	283			278			409			250			(798		)	422
Income tax (benefit) provision	(1		)	(7		)	104			6			—			102
Net earnings	284			285			305			244			(798		)	320
Less: Net earnings attributable to noncontrolling interests	—			—			—			37			—			37
Net earnings attributable to common stockholders	$	284		$	285		$	305		$	207		$	(798	)	$	283

Condensed Consolidating Statement of Comprehensive Income

	Three months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors		Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	284		$	285		$	305	$	244		$	(798	)	$	320
Other comprehensive (loss) income	(3		)	(3		)	2		(7		)	8			(3		)
Comprehensive income	281			282			307		237			(790		)	317
Less: Comprehensive income attributable to noncontrolling interests	—			—			—		37			—			37
Comprehensive income attributable to common stockholders	$	281		$	282		$	307	$	200		$	(790	)	$	280

25

CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Statement of Operations

	Six months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	186		$	2,001		$	1,939		$	(1,623	)	$	2,503
Cost of sales	—			157			1,768			1,478			(1,619		)	1,784
Gross margin	—			29			233			461			(4		)	719
Selling, general and administrative expenses	2			(1		)	85			38			(4		)	120
Other operating—net	—			4			(39		)	2			—			(33		)
Total other operating costs and expenses	2			3			46			40			(4		)	87
Equity in earnings of operating affiliates	—			1			—			7			—			8
Operating (loss) earnings	(2		)	27			187			428			—			640
Interest expense	1			123			1			1			(7		)	119
Interest expense—mandatorily redeemable preferred shares	—			—			—			2			(2		)	—
Interest income	(1		)	—			(8		)	(8		)	9			(8		)
Net earnings of wholly owned subsidiaries	(375		)	(451		)	(376		)	—			1,202			—
Other non-operating—net	—			—			(1		)	(2		)	—			(3		)
Earnings before income taxes	373			355			571			435			(1,202		)	532
Income tax (benefit) provision	(1		)	(20		)	134			(19		)	—			94
Net earnings	374			375			437			454			(1,202		)	438
Less: Net earnings attributable to noncontrolling interests	—			—			—			65			—			65
Net earnings attributable to common stockholders	$	374		$	375		$	437		$	389		$	(1,202	)	$	373

Condensed Consolidating Statement of Comprehensive Income

	Six months ended June 30, 2019
	Parent		CF Industries		Subsidiary Guarantors		Non-Guarantors		Eliminations			Consolidated
	(in millions)
Net earnings	$	374	$	375	$	437	$	454	$	(1,202	)	$	438
Other comprehensive income	28		28		22		24		(75		)	27
Comprehensive income	402		403		459		478		(1,277		)	465
Less: Comprehensive income attributable to noncontrolling interests	—		—		—		65		—			65
Comprehensive income attributable to common stockholders	$	402	$	403	$	459	$	413	$	(1,277	)	$	400

26

CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Statement of Operations

	Three months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	85		$	1,063		$	918		$	(766	)	$	1,300
Cost of sales	—			69			922			761			(764		)	988
Gross margin	—			16			141			157			(2		)	312
Selling, general and administrative expenses	—			2			33			20			(2		)	53
Other operating—net	—			5			1			(3		)	—			3
Total other operating costs and expenses	—			7			34			17			(2		)	56
Equity in (losses) earnings of operating affiliate	—			(1		)	—			19			—			18
Operating earnings	—			8			107			159			—			274
Interest expense	—			61			6			2			(8		)	61
Interest income	—			(1		)	(2		)	(7		)	8			(2		)
Net earnings of wholly owned subsidiaries	(148		)	(188		)	(139		)	—			475			—
Other non-operating—net	—			—			—			(3		)	—			(3		)
Earnings before income taxes	148			136			242			167			(475		)	218
Income tax (benefit) provision	—			(12		)	56			—			—			44
Net earnings	148			148			186			167			(475		)	174
Less: Net earnings attributable to noncontrolling interests	—			—			—			26			—			26
Net earnings attributable to common stockholders	$	148		$	148		$	186		$	141		$	(475	)	$	148

Condensed Consolidating Statement of Comprehensive Income

	Three months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	148		$	148		$	186		$	167		$	(475	)	$	174
Other comprehensive loss	(61		)	(61		)	(35		)	(62		)	158			(61		)
Comprehensive income	87			87			151			105			(317		)	113
Less: Comprehensive income attributable to noncontrolling interests	—			—			—			26			—			26
Comprehensive income attributable to common stockholders	$	87		$	87		$	151		$	79		$	(317	)	$	87

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CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Statement of Operations

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	190		$	1,775		$	1,803		$	(1,511	)	$	2,257
Cost of sales	—			159			1,638			1,461			(1,503		)	1,755
Gross margin	—			31			137			342			(8		)	502
Selling, general and administrative expenses	1			3			72			42			(8		)	110
Other operating—net	—			(8		)	(2		)	(8		)	—			(18		)
Total other operating costs and expenses	1			(5		)	70			34			(8		)	92
Equity in earnings of operating affiliates	—			2			—			23			—			25
Operating (loss) earnings	(1		)	38			67			331			—			435
Interest expense	—			123			10			3			(15		)	121
Interest income	(1		)	(3		)	(5		)	(11		)	15			(5		)
Net earnings of wholly owned subsidiaries	(211		)	(275		)	(274		)	—			760			—
Other non-operating—net	—			—			—			(4		)	—			(4		)
Earnings before income taxes	211			193			336			343			(760		)	323
Income tax (benefit) provision	—			(18		)	73			6			—			61
Net earnings	211			211			263			337			(760		)	262
Less: Net earnings attributable to noncontrolling interests	—			—			—			51			—			51
Net earnings attributable to common stockholders	$	211		$	211		$	263		$	286		$	(760	)	$	211

Condensed Consolidating Statement of Comprehensive Income

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	211		$	211		$	263		$	337		$	(760	)	$	262
Other comprehensive loss	(46		)	(46		)	(34		)	(47		)	128			(45		)
Comprehensive income	165			165			229			290			(632		)	217
Less: Comprehensive income attributable to noncontrolling interests	—			—			—			51			—			51
Comprehensive income attributable to common stockholders	$	165		$	165		$	229		$	239		$	(632	)	$	166

28

CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Balance Sheet

	June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	68		$	10		$	45		$	735		$	—		$	858
Accounts and notes receivable—net	145			512			1,376			804			(2,524		)	313
Inventories	—			—			136			154			—			290
Prepaid income taxes	—			—			—			1			—			1
Other current assets	—			—			18			8			—			26
Total current assets	213			522			1,575			1,702			(2,524		)	1,488
Property, plant and equipment—net	—			—			109			8,227			—			8,336
Investments in affiliates	3,893			8,377			6,719			101			(18,989		)	101
Goodwill	—			—			2,064			289			—			2,353
Operating lease right-of-use assets	—			—			276			5			—			281
Other assets	—			3			146			327			(172		)	304
Total assets	$	4,106		$	8,902		$	10,889		$	10,651		$	(21,685	)	$	12,863
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	1,040		$	293		$	1,309		$	298		$	(2,524	)	$	416
Income taxes payable	—			—			13			—			—			13
Customer advances	—			—			21			—			—			21
Current operating lease liabilities	—			—			87			2			—			89
Current maturities of long-term debt	—			498			—			—			—			498
Other current liabilities	—			—			5			—			—			5
Total current liabilities	1,040			791			1,435			300			(2,524		)	1,042
Long-term debt, net of current maturities	—			4,203			44			126			(170		)	4,203
Dividends payable—mandatorily redeemable preferred shares	—			—			—			2			(2		)	—
Deferred income taxes	—			—			1,047			160			—			1,207
Operating lease liabilities	—			—			194			3			—			197
Other liabilities	—			15			230			151			—			396
Equity:
Stockholders’ equity:
Preferred stock	—			—			—			—			—			—
Common stock	2			—			—			5,147			(5,147		)	2
Paid-in capital	1,299			1,799			8,760			1,263			(11,822		)	1,299
Retained earnings	2,111			2,438			(558		)	1,039			(2,919		)	2,111
Treasury stock	(2		)	—			—			—			—			(2		)
Accumulated other comprehensive loss	(344		)	(344		)	(255		)	(300		)	899			(344		)
Total stockholders’ equity	3,066			3,893			7,947			7,149			(18,989		)	3,066
Noncontrolling interests	—			—			(8		)	2,760			—			2,752
Total equity	3,066			3,893			7,939			9,909			(18,989		)	5,818
Total liabilities and equity	$	4,106		$	8,902		$	10,889		$	10,651		$	(21,685	)	$	12,863

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CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Balance Sheet

	December 31, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	36		$	27		$	65		$	554		$	—		$	682
Accounts and notes receivable—net	135			500			1,203			911			(2,514		)	235
Inventories	—			4			142			163			—			309
Prepaid income taxes	—			—			24			4			—			28
Other current assets	—			—			15			5			—			20
Total current assets	171			531			1,449			1,637			(2,514		)	1,274
Property, plant and equipment—net	—			—			118			8,505			—			8,623
Investments in affiliates	3,656			8,208			6,857			94			(18,722		)	93
Goodwill	—			—			2,064			289			—			2,353
Other assets	—			4			126			320			(132		)	318
Total assets	$	3,827		$	8,743		$	10,614		$	10,845		$	(21,368	)	$	12,661
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	870		$	374		$	1,429		$	386		$	(2,514	)	$	545
Income taxes payable	—			—			5			—			—			5
Customer advances	—			—			149			—			—			149
Other current liabilities	—			—			6			—			—			6
Total current liabilities	870			374			1,589			386			(2,514		)	705
Long-term debt	—			4,698			43			89			(132		)	4,698
Deferred income taxes	—			—			960			157			—			1,117
Other liabilities	—			15			232			163			—			410
Equity:
Stockholders’ equity:
Preferred stock	—			—			—			—			—			—
Common stock	2			—			—			5,363			(5,363		)	2
Paid-in capital	1,368			1,799			9,070			1,265			(12,134		)	1,368
Retained earnings	2,463			2,229			(995		)	965			(2,199		)	2,463
Treasury stock	(504		)	—			—			—			—			(504		)
Accumulated other comprehensive loss	(372		)	(372		)	(277		)	(324		)	974			(371		)
Total stockholders’ equity	2,957			3,656			7,798			7,269			(18,722		)	2,958
Noncontrolling interests	—			—			(8		)	2,781			—			2,773
Total equity	2,957			3,656			7,790			10,050			(18,722		)	5,731
Total liabilities and equity	$	3,827		$	8,743		$	10,614		$	10,845		$	(21,368	)	$	12,661

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CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Statement of Cash Flows

	Six months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	374		$	375		$	437		$	454		$	(1,202	)	$	438
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	—			4			12			424			—			440
Deferred income taxes	—			—			86			(1		)	—			85
Stock-based compensation expense	17			—			—			—			—			17
Unrealized net loss on natural gas derivatives	—			—			1			—			—			1
Unrealized loss on embedded derivative	—			—			2			—			—			2
Gain on disposal of property, plant and equipment	—			—			(45		)	—			—			(45		)
Undistributed earnings of affiliates—net	(375		)	(451		)	(376		)	(10		)	1,202			(10		)
Changes in:
Intercompany accounts receivable/accounts payable—net	(9		)	(11		)	(22		)	42			—			—
Accounts receivable—net	—			(1		)	(70		)	(7		)	—			(78		)
Inventories	—			4			5			12			—			21
Accrued and prepaid income taxes	(1		)	(20		)	63			(7		)	—			35
Accounts and notes payable and accrued expenses	—			(4		)	(21		)	(69		)	—			(94		)
Customer advances	—			—			(128		)	—			—			(128		)
Other—net	—			—			2			7			—			9
Net cash provided by (used in) operating activities	6			(104		)	(54		)	845			—			693
Investing Activities:
Additions to property, plant and equipment	—			—			(8		)	(146		)	—			(154		)
Proceeds from sale of property, plant and equipment	—			—			55			8			—			63
Distributions received from unconsolidated affiliates	—			225			209			(434		)	—			—
Net cash provided by (used in) investing activities	—			225			256			(572		)	—			(91		)
Financing Activities:
Long-term debt—net	—			—			(39		)	39			—			—
Short-term debt—net	199			29			(183		)	(45		)	—			—
Dividends paid on common stock	(133		)	(167		)	—			—			167			(133		)
Dividends to/from affiliates	167			—			—			—			(167		)	—
Distribution to noncontrolling interest	—			—			—			(86		)	—			(86		)
Purchases of treasury stock	(209		)	—			—			—			—			(209		)
Issuances of common stock under employee stock plans	6			—			—			—			—			6
Shares withheld for taxes	(4		)	—			—			—			—			(4		)
Net cash provided by (used in) financing activities	26			(138		)	(222		)	(92		)	—			(426		)
Increase (decrease) in cash and cash equivalents	32			(17		)	(20		)	181			—			176
Cash and cash equivalents at beginning of period	36			27			65			554			—			682
Cash and cash equivalents at end of period	$	68		$	10		$	45		$	735		$	—		$	858

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CF INDUSTRIES HOLDINGS, INC.

Condensed Consolidating Statement of Cash Flows

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	211		$	211		$	263		$	337		$	(760	)	$	262
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization	—			4			11			419			—			434
Deferred income taxes	—			—			12			(10		)	—			2
Stock-based compensation expense	11			—			—			—			—			11
Unrealized net loss (gain) on natural gas derivatives	—			—			(5		)	(3		)	—			(8		)
Unrealized loss on embedded derivative	—			—			1			—			—			1
Undistributed earnings of affiliates—net	(211		)	(275		)	(274		)	(3		)	760			(3		)
Changes in:
Intercompany accounts receivable/accounts payable—net	(15		)	(84		)	124			(25		)	—			—
Accounts receivable—net	—			(16		)	(20		)	2			—			(34		)
Inventories	—			4			4			13			—			21
Accrued and prepaid income taxes	—			(18		)	69			1			—			52
Accounts and notes payable and accrued expenses	—			(9		)	(1		)	(36		)	—			(46		)
Customer advances	—			—			(68		)	—			—			(68		)
Other—net	—			(1		)	4			(29		)	—			(26		)
Net cash (used in) provided by operating activities	(4		)	(184		)	120			666			—			598
Investing Activities:
Additions to property, plant and equipment	—			—			(4		)	(141		)	—			(145		)
Proceeds from sale of property, plant and equipment	—			—			—			16			—			16
Distributions received from unconsolidated affiliates	—			—			184			(174		)	—			10
Investments in consolidated subs - capital contributions	—			(31		)	(415		)	446			—			—
Other—net	—			—			—			1			—			1
Net cash (used in) provided by investing activities	—			(31		)	(235		)	148			—			(118		)
Financing Activities:
Long-term debt—net	—			—			178			(178		)	—			—
Short-term debt—net	141			202			(371		)	28			—			—
Financing fees	—			1			—			—			—			1
Dividends paid on common stock	(140		)	—			—			(49		)	49			(140		)
Dividends to/from affiliates	—			—			49			—			(49		)	—
Acquisition of noncontrolling interest in TNCLP	—			—			—			(388		)	—			(388		)
Distributions to noncontrolling interests	—			—			—			(59		)	—			(59		)
Issuances of common stock under employee stock plans	4			—			—			—			—			4
Shares withheld for taxes	(1		)	—			—			—			—			(1		)
Net cash provided by (used in) financing activities	4			203			(144		)	(646		)	—			(583		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(4		)	—			(4		)
(Decrease) increase in cash and cash equivalents	—			(12		)	(259		)	164			—			(107		)
Cash and cash equivalents at beginning of period	—			15			388			432			—			835
Cash and cash equivalents at end of period	$	—		$	3		$	129		$	596		$	—		$	728

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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

        You should read the following discussion and analysis in conjunction with our annual consolidated financial statements and related notes, which were included in our 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2019, as well as Item 1. Financial Statements, in this Form 10-Q. All references to “CF Holdings,” “we,” “us,” “our” and “the Company” refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is only to CF Industries Holdings, Inc. itself and not its subsidiaries. All references to “CF Industries” refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc. References to tons refer to short-tons. Notes referenced in this discussion and analysis refer to the notes to our unaudited interim consolidated financial statements that are found in the preceding section: Item 1. Financial Statements. The following is an outline of the discussion and analysis included herein:

• Overview of CF Holdings

• Our Company

• Items Affecting Comparability of Results

• Financial Executive Summary

• Results of Consolidated Operations

• Second Quarter of 2019 Compared to Second Quarter of 2018

• Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

• Operating Results by Business Segment

• Liquidity and Capital Resources

• Off-Balance Sheet Arrangements

• Critical Accounting Policies and Estimates

• Recent Accounting Pronouncements

• Forward-Looking Statements

Overview of CF Holdings

Our Company

We are a leading global fertilizer and chemical company. Our 3,000 employees operate world-class manufacturing complexes in Canada, the United Kingdom and the United States. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers, farmers and industrial users. Our principal nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium. We serve our customers in North America through our production, storage, transportation and distribution network. We also reach a global customer base with exports from our Donaldsonville, Louisiana, plant, the world’s largest and most flexible nitrogen complex. Additionally, we move product to international destinations from our Verdigris, Oklahoma, facility, our Yazoo City, Mississippi, facility, our Billingham and Ince facilities in the United Kingdom, and from a joint venture ammonia facility in the Republic of Trinidad and Tobago in which we own a 50 percent interest.

Our principal assets as of June 30, 2019 include:

• five U.S. nitrogen fertilizer manufacturing facilities located in Donaldsonville, Louisiana (the largest nitrogen fertilizer complex in the world); Port Neal, Iowa; Yazoo City, Mississippi; Verdigris, Oklahoma; and Woodward, Oklahoma. These facilities are owned by CF Industries Nitrogen, LLC (CFN), of which we own approximately 89% and CHS Inc. (CHS) owns the remainder. See Note 14—Noncontrolling Interests for additional information on our strategic venture with CHS;

• two Canadian nitrogen fertilizer manufacturing facilities located in Medicine Hat, Alberta (the largest nitrogen fertilizer complex in Canada) and Courtright, Ontario;

• two United Kingdom nitrogen manufacturing facilities located in Billingham and Ince;

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CF INDUSTRIES HOLDINGS, INC.

• an extensive system of terminals and associated transportation equipment located primarily in the Midwestern United States; and

• a 50% interest in Point Lisas Nitrogen Limited (PLNL), an ammonia production joint venture located in the Republic of Trinidad and Tobago that we account for under the equity method.

Items Affecting Comparability of Results

Sales Volume

Sales volume for our products in each of the first six months of 2019 and 2018 was 9.8 million product tons. However, persistent cold and wet weather across most of North America early in 2019 delayed spring planting activity and fertilizer applications from the first quarter into the second quarter. In addition, high water levels impacted shipping and logistics on inland rivers and delayed certain barge shipments. This resulted in delays in certain customers taking delivery of fertilizer and other customers delaying purchases, which resulted in high inventory levels entering the second quarter of 2019 as volume typically shipped in the first quarter was instead shipped in the second quarter. These factors were a primary driver of the increase in our second quarter sales volume.

Sales volume for the three months ended June 30, 2019 was 5.7 million product tons, an increase of 3% compared to sales volume of 5.5 million product tons for the three months ended June 30, 2018, which resulted in an increase in net sales of approximately $54 million. Sales volumes of ammonia, granular urea and UAN increased as a result of the delay in the spring application season. In addition, due to the late planting and wet field conditions, customer preference for granular urea and UAN increased, and we set a quarterly record for shipments of granular urea. Partially offsetting these increases was a decline in sales volumes of AN due primarily to lower supply availability.

Selling Prices

The U.S. Gulf is a major global fertilizer pricing point due to the volume of nitrogen fertilizer that trades there. In 2018, higher energy costs in Asia and Europe, along with continued enforcement of environmental regulations in China, resulted in lower nitrogen production in these regions. In addition, plant outages impacted the nitrogen supply and demand balance. These factors collectively drove global nitrogen prices higher in the latter half of 2018.

Upon entering the first quarter of 2019, our average selling prices were higher than the first quarter of 2018, driven by the impact of a tighter global nitrogen supply and demand balance experienced throughout late 2018. During the first half of 2019, our average selling prices for all fertilizer products remained strong due to the limited supply of fertilizer as high water levels and flooding impacted shipping and logistics on inland rivers and limited access for imports.

The average selling price for our products for the three months ended June 30, 2019 was $263 per ton compared to $235 per ton for the three months ended June 30, 2018, an increase of 12%, which resulted in an increase in net sales of approximately $148 million. Each of our segments reported higher average selling prices in the second quarter of 2019 as compared to the second quarter of 2018. The average selling price for our products for the six months ended June 30, 2019 was $255 per ton compared to $229 per ton for the six months ended June 30, 2018, an increase of 11%, which resulted in an increase in net sales of approximately $210 million.

Other Items Affecting Comparability

In addition to the impact of market conditions on nitrogen fertilizer selling prices and sales volume, certain items impacted the comparability of our financial results during the three and six months ended June 30, 2019 and 2018. The following table and related discussion outline these items and how they impacted the comparability of our financial results during these periods. During the three months ended June 30, 2019 and 2018, we reported net earnings attributable to common stockholders of $283 million and $148 million, respectively. During the six months ended June 30, 2019 and 2018, we reported net earnings attributable to common stockholders of $373 million and $211 million, respectively.

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CF INDUSTRIES HOLDINGS, INC.

	Three Months Ended June 30,												Six Months Ended June 30,
	2019						2018						2019						2018
	Pre-Tax			After-Tax			Pre-Tax			After-Tax			Pre-Tax			After-Tax			Pre-Tax			After-Tax
	(in millions)
Unrealized net mark-to-market (gain) loss on natural gas derivatives(1)	$	(1	)	$	—		$	(5	)	$	(4	)	$	1		$	1		$	(8	)	$	(6	)
Loss (gain) on foreign currency transactions, including intercompany loans(2)	5			4			2			2			7			5			(3		)	(2		)
Gain on sale of Pine Bend facility(2)	(45		)	(35		)	—			—			(45		)	(35		)	—			—
Louisiana incentive tax credit(3)	—			—			—			—			—			(30		)	—			—
Costs related to the acquisition of TNCLP Public Units(4)	—			—			—			—			—			—			2			1
Earnings attributable to noncontrolling interests - TNCLP(5)	—			—			—			—			—			—			8			8
PLNL settlement income(6)	—			—			(19		)	(19		)	—			—			(19		)	(19		)

______________________________________________________________________________

⁽¹⁾  Included in cost of sales in our consolidated statements of operations.

⁽²⁾  Included in other operating—net in our consolidated statements of operations.

⁽³⁾  Included in income tax provision in our consolidated statement of operations.

⁽⁴⁾  Included in selling, general and administrative expenses in our consolidated statement of operations.

⁽⁵⁾  Included in net earnings attributable to noncontrolling interests in our consolidated statements of operations.

⁽⁶⁾  Included in equity in earnings of operating affiliate in our consolidated statements of operations.

The following describes these items, identified in the table above, that impacted the comparability of our financial results for the three and six months ended June 30, 2019 and 2018. Descriptions of items below that refer to amounts in the table above refer to the pre-tax amounts.

Unrealized net mark-to-market (gain) loss on natural gas derivatives

Natural gas is typically the largest and most volatile single component of the manufacturing cost for nitrogen-based products. At certain times, we have managed the risk of changes in natural gas prices through the use of derivative financial instruments. The derivatives that we may use for this purpose are primarily natural gas fixed price swaps, natural gas basis swaps and natural gas options. We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting. This can result in volatility in reported earnings due to the unrealized mark-to-market adjustments that occur from changes in the value of the derivatives, which is reflected in cost of sales in our consolidated statements of operations. In the three months ended June 30, 2019 and 2018, we recognized unrealized net mark-to-market gains of $1 million and $5 million, respectively. In the six months ended June 30, 2019 and 2018, we recognized an unrealized net mark-to-market loss (gain) of $1 million and $(8) million, respectively.

Loss (gain) on foreign currency transactions, including intercompany loans

In the three and six months ended June 30, 2019, we recognized losses of $5 million and $7 million, respectively, from the impact of changes in foreign currency exchange rates on primarily British pound and Canadian dollar denominated intercompany loans that were not permanently invested.

Gain on sale of Pine Bend facility

During the first quarter of 2019, we entered into an agreement to sell our Pine Bend dry bulk storage and logistics facility in Minnesota. In April of 2019, we completed the sale, received proceeds of $55 million and recognized a pre-tax gain of $45 million. The gain is reflected in other operating—net in our consolidated statement of operations for the three and six months ended June 30, 2019.

Louisiana incentive tax credit

For the six months ended June 30, 2019, our income tax provision includes an incentive tax credit from the State of Louisiana of $30 million, net of federal income tax, related to certain capital projects at our Donaldsonville, Louisiana complex.

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CF INDUSTRIES HOLDINGS, INC.

Acquisition of the Terra Nitrogen Company, L.P. (TNCLP) Public Units

In the first quarter of 2018, we announced that, in accordance with the terms of TNCLP’s First Amended and Restated Agreement of Limited Partnership (as amended by Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership, the TNCLP Agreement of Limited Partnership), Terra Nitrogen GP Inc. (TNGP), the sole general partner of TNCLP and an indirect wholly owned subsidiary of CF Holdings, elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of TNCLP (the TNCLP Public Units). TNGP completed its purchase of the TNCLP Public Units on April 2, 2018 (the Purchase) for an aggregate cash purchase price of $388 million. We funded the Purchase with cash on hand. Upon completion of the Purchase, CF Holdings owned, through its subsidiaries, 100 percent of the general and limited partnership interests of TNCLP.

In the six months ended June 30, 2018, we incurred $2 million of costs for various legal services associated with the acquisition of the TNCLP Public Units. These costs are reflected in selling, general and administrative expenses in our consolidated statement of operations.

Beginning in the second quarter of 2018, as a result of the April 2, 2018 acquisition of the TNCLP Public Units, there are no longer earnings attributable to noncontrolling interests in TNCLP. In the six months ended June 30, 2018, earnings attributable to noncontrolling interests in TNCLP was $8 million.

PLNL settlement income

Our joint venture in the Republic of Trinidad and Tobago, PLNL, operates an ammonia plant that relies on natural gas supplied, under a Gas Sales Contract (the NGC Contract), by The National Gas Company of Trinidad and Tobago Limited (NGC). PLNL experienced past curtailments in the supply of natural gas, which reduced historical ammonia production at PLNL. The NGC Contract had an initial expiration date of September 2018 and was extended on the same terms until September 2023. Any NGC commitment to supply gas beyond 2023 will be based on new agreements. In May 2018, the NGC and PLNL reached a settlement of an arbitration proceeding regarding PLNL’s claims for damages due to natural gas supply curtailments. The net after-tax impact of the settlement reached between NGC and PLNL that is recognized in our consolidated statements of operations for the three and six months ended June 30, 2018 was an increase in our equity in earnings of operating affiliate of approximately $19 million.

Financial Executive Summary

We reported net earnings attributable to common stockholders of $283 million for the three months ended June 30, 2019 compared to $148 million for the three months ended June 30, 2018, or an increase in net earnings of 91%, or $135 million. Diluted net earnings per share attributable to common stockholders increased 103%, or $0.65 per share to $1.28 in the second quarter of 2019 compared to $0.63 in the second quarter of 2018. The increase in net earnings of $135 million was due primarily to the following:

• Net sales were $1.50 billion in the second quarter of 2019, an increase of $0.20 billion, or 16%, from $1.30 billion in the second quarter of 2018, reflecting an increase in average selling prices of 12% and a 3% increase in sales volume.

• Gross margin increased by $187 million in the second quarter of 2019 to $499 million as compared to $312 million in the second quarter of 2018. The increase in gross margin was driven by an increase in average selling prices, reflecting the impact of a tighter global nitrogen supply and demand balance, and an increase in sales volume. This increase was partially offset by higher shipping and distribution costs due to weather related factors. The 12% increase in average selling prices increased gross margin by $148 million, and the 3% increase in sales volume increased gross margin by $33 million.

• The second quarter of 2019 includes a pre-tax gain on the sale of the Pine Bend facility of $45 million, which is more fully described in the section above titled “Items Affecting Comparability of Results.”

• Our income tax provision increased by $58 million in the second quarter of 2019 to $102 million as compared to $44 million in the second quarter of 2018 due to higher earnings before income taxes.

On February 13, 2019, our Board of Directors (the Board) authorized the repurchase of up to $1 billion of CF Holdings common stock through December 31, 2021 (the 2019 Share Repurchase Program). Repurchases under the 2019 Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions, block transactions or otherwise. The manner, timing and amount of repurchases will be determined by our management based on the evaluation of market conditions, stock price and other factors. In the second quarter of 2019, we repurchased approximately

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CF INDUSTRIES HOLDINGS, INC.

2.7 million shares for $118 million and from January 1, 2019 to June 30, 2019, we repurchased a total of 4.2 million shares for $178 million.

Results of Consolidated Operations

The following table presents our consolidated results of operations and supplemental data:

	Three Months Ended June 30,											Six Months Ended June 30,
	2019			2018			2019 v. 2018					2019			2018			2019 v. 2018
	(in millions, except as noted)
Net sales	$	1,502		$	1,300		$	202		16	%	$	2,503		$	2,257		$	246		11	%
Cost of sales	1,003			988			15			2	%	1,784			1,755			29			2	%
Gross margin	499			312			187			60	%	719			502			217			43	%
Gross margin percentage	33.2		%	24.0		%	9.2		%			28.7		%	22.2		%	6.5		%
Selling, general and administrative expenses	62			53			9			17	%	120			110			10			9	%
Other operating—net	(37		)	3			(40		)	N/M		(33		)	(18		)	(15		)	(83	)%
Total other operating costs and expenses	25			56			(31		)	(55	)%	87			92			(5		)	(5	)%
Equity in earnings of operating affiliate	1			18			(17		)	(94	)%	8			25			(17		)	(68	)%
Operating earnings	475			274			201			73	%	640			435			205			47	%
Interest expense—net	55			59			(4		)	(7	)%	111			116			(5		)	(4	)%
Other non-operating—net	(2		)	(3		)	1			33	%	(3		)	(4		)	1			25	%
Earnings before income taxes	422			218			204			94	%	532			323			209			65	%
Income tax provision	102			44			58			132	%	94			61			33			54	%
Net earnings	320			174			146			84	%	438			262			176			67	%
Less: Net earnings attributable to noncontrolling interests	37			26			11			42	%	65			51			14			27	%
Net earnings attributable to common stockholders	$	283		$	148		$	135		91	%	$	373		$	211		$	162		77	%
Diluted net earnings per share attributable to common stockholders	$	1.28		$	0.63		$	0.65		103	%	$	1.67		$	0.90		$	0.77		86	%
Diluted weighted-average common shares outstanding	222.3			234.9			(12.6		)	(5	)%	223.4			234.8			(11.4		)	(5	)%
Dividends declared per common share	$	0.30		$	0.30		$	—		—	%	$	0.60		$	0.60		$	—		—	%
Natural gas supplemental data (per MMBtu)
Natural gas costs in cost of sales(1)	$	2.81		$	2.92		$	(0.11	)	(4	)%	$	3.16		$	3.08		$	0.08		3	%
Realized derivatives loss (gain) in cost of sales(2)	—			0.03			(0.03		)	(100	)%	(0.01		)	0.03			(0.04		)	N/M
Cost of natural gas in cost of sales	$	2.81		$	2.95		$	(0.14	)	(5	)%	$	3.15		$	3.11		$	0.04		1	%
Average daily market price of natural gas Henry Hub (Louisiana)	$	2.51		$	2.82		$	(0.31	)	(11	)%	$	2.70		$	2.92		$	(0.22	)	(8	)%
Average daily market price of natural gas National Balancing Point (UK)	$	4.07		$	7.34		$	(3.27	)	(45	)%	$	5.15		$	7.77		$	(2.62	)	(34	)%
Unrealized net mark-to-market (gain) loss on natural gas derivatives	$	(1	)	$	(5	)	$	4		80	%	$	1		$	(8	)	$	9		N/M
Depreciation and amortization	$	252		$	241		$	11		5	%	$	440		$	434		$	6		1	%
Capital expenditures	$	74		$	77		$	(3	)	(4	)%	$	154		$	145		$	9		6	%
Sales volume by product tons (000s)	5,716			5,538			178			3	%	9,803			9,841			(38		)	—	%
Production volume by product tons (000s):
Ammonia(3)	2,661			2,460			201			8	%	5,228			4,968			260			5	%
Granular urea	1,324			1,228			96			8	%	2,630			2,379			251			11	%
UAN (32%)	1,589			1,557			32			2	%	3,226			3,362			(136		)	(4	)%
AN	551			423			128			30	%	1,033			881			152			17	%

___________________________________________________________________________

N/M—Not Meaningful

⁽¹⁾  Includes the cost of natural gas and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method.

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CF INDUSTRIES HOLDINGS, INC.

⁽²⁾  Includes realized gains and losses on natural gas derivatives settled during the period. Excludes unrealized mark-to-market gains and losses on natural gas derivatives.

⁽³⁾  Gross ammonia production, including amounts subsequently upgraded on-site into granular urea, UAN, or AN.

Second Quarter of 2019 Compared to Second Quarter of 2018

Net Sales

Our total net sales increased $202 million, or 16%, to $1.50 billion in the second quarter of 2019 compared to $1.30 billion in the second quarter of 2018 due to a 12% increase in average selling prices, which increased net sales by $148 million, and higher sales volumes, which increased net sales by $54 million.

Average selling prices were $263 per ton in the second quarter of 2019 compared to $235 per ton in the second quarter of 2018 due to higher average selling prices in all segments, driven by the impact of a tighter global nitrogen supply and demand balance. Additionally, high water levels and flooding in the second quarter of 2019 impacted shipping and logistics on inland rivers and reduced access to imports, which contributed to higher average selling prices.

Our total sales volume increased 3% from the second quarter of 2018 to the second quarter of 2019, due primarily to higher ammonia, granular urea and UAN sales volumes shipped in the second quarter of 2019 that was shifted from the first quarter of 2019 as a result of the delayed spring application season. This impact was partially offset by lower AN sales volume due to lower supply availability.

Cost of Sales

Our total cost of sales increased $15 million, or 2%, from the second quarter of 2018 to the second quarter of 2019. The increase in our cost of sales was due primarily to the impact of higher volumes and higher shipping and distribution costs due to weather related factors and the delay in the spring application season, partially offset by lower realized natural gas costs, including the impact of realized derivatives, and lower costs related to plant turnaround and maintenance activity. Cost of sales averaged $175 per ton in the second quarter of 2019, a 2% decrease from $178 per ton in the same quarter of 2018. Realized natural gas costs, including the impact of realized derivatives, decreased 5% from $2.95 per MMBtu in 2018 to $2.81 per MMBtu in 2019.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $9 million to $62 million in the second quarter of 2019 as compared to $53 million in the comparable period of 2018, due primarily to certain equity award modifications, higher incentive compensation due to strong operating performance and the cost of certain corporate office initiatives.

Other Operating—Net

Other operating—net was $37 million of income in the second quarter of 2019 compared to $3 million of expense in the comparable period of 2018. The $37 million of income in the second quarter of 2019 was primarily due to the pre-tax gain recognized on the sale of the Pine Bend facility of $45 million, partially offset by foreign currency transaction losses.

Equity in Earnings of Operating Affiliate

Equity in earnings of operating affiliate was $1 million in the second quarter of 2019 compared to $18 million in the second quarter of 2018. Earnings in the second quarter of 2018 includes approximately $19 million related to the net after-tax impact of a settlement reached between NGC and PLNL of an arbitration proceeding regarding PLNL’s claims for damages due to historical natural gas supply curtailments. See above under “Items Affecting Comparability of Results—PLNL settlement income” for additional information.

Interest Expense—Net

Net interest expense was $55 million in the second quarter of 2019 compared to $59 million in the second quarter of 2018, primarily reflecting higher interest income.

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CF INDUSTRIES HOLDINGS, INC.

Income Taxes

For the three months ended June 30, 2019, we recorded an income tax provision of $102 million on pre-tax income of $422 million, or an effective tax rate of 24.2%, compared to an income tax provision of $44 million on pre-tax income of $218 million, or an effective tax rate of 20.2%, for the three months ended June 30, 2018.

Our effective tax rate is impacted by earnings attributable to the noncontrolling interest, as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interest. Our effective tax rate for the three months ended June 30, 2019 of 24.2%, which is based on pre-tax income of $422 million, would be 26.5% exclusive of the earnings attributable to the noncontrolling interests of $37 million. Our effective tax rate for the three months ended June 30, 2018 of 20.2%, which is based on pre-tax income of $218 million, would be 23.0% exclusive of the earnings attributable to the noncontrolling interests of $26 million. See Note 10—Income Taxes and Note 14—Noncontrolling Interests for additional information.

On April 2, 2018, we acquired the TNCLP Public Units. Our effective tax rate in the second quarter of 2018 was impacted by a $20 million reduction to our deferred tax liability as a result of the change in our effective state income tax rate as a result of the implementation of legal entity structure changes related to the acquisition.

Net Earnings Attributable to Noncontrolling Interests

Net earnings attributable to noncontrolling interests increased $11 million in the second quarter of 2019 compared to the second quarter of 2018 due to higher earnings from CFN primarily driven by higher average selling prices due to the impact of a tighter global nitrogen supply and demand balance and lower realized natural gas costs.

Diluted Net Earnings Per Share Attributable to Common Stockholders

Net earnings per share attributable to common stockholders increased $0.65 to $1.28 per diluted share in the second quarter of 2019 from $0.63 per diluted share in the second quarter of 2018. This increase is due primarily to higher gross margin from higher average selling prices due to the impact of a tighter global nitrogen supply and demand balance, an increase in ammonia, granular urea and UAN sales volumes and a 5% reduction in diluted weighted-average common shares outstanding due to repurchases made under our share repurchase programs.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net Sales

Our total net sales increased $246 million, or 11%, to $2.50 billion in the first six months of 2019 compared to $2.26 billion in the first six months of 2018 due primarily to an 11% increase in average selling prices, which increased net sales by $210 million.

Average selling prices were $255 per ton in the first six months of 2019, or 11% higher, as compared to $229 per ton in the first six months of 2018 due to higher average selling prices in our granular urea, UAN, ammonia and AN segments, driven by the impact of a tighter global nitrogen supply and demand balance.

Our total sales volume was essentially unchanged from the first six months of 2018 to the first six months of 2019, as higher sales volume in our granular urea, ammonia and AN segments were offset by lower sales volumes in our UAN and Other segments.

Cost of Sales

Our total cost of sales increased $29 million, or 2%, from the first six months of 2018 to the first six months of 2019. The increase in our cost of sales was due primarily to the impact of higher shipping costs, higher realized natural gas costs and an unrealized net mark-to-market loss on natural gas derivatives in the first six months of 2019 compared to a gain in the same period of 2018. These increases were partially offset by lower costs related to plant turnaround and maintenance activity. The cost of sales per ton averaged $182 per ton in the first six months of 2019, a 2% increase from $178 per ton in the same period of 2018. The first six months of 2019 included a $1 million unrealized net mark-to-market loss compared to an $8 million unrealized net mark-to-market gain in the first six months of 2018. Additionally, realized natural gas costs, including the impact of realized derivatives, increased 1% from $3.11 per MMBtu in the first six months of 2018 to $3.15 in the first six months of 2019.

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CF INDUSTRIES HOLDINGS, INC.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $10 million to $120 million in the first six months of 2019 as compared to $110 million in the comparable period of 2018. The increase was due primarily to certain equity award modifications, higher incentive compensation due to strong operating performance and the cost of certain corporate office initiatives.

Other Operating—Net

Other operating—net was $33 million of income in the first six months of 2019 compared to $18 million of income in the comparable period of 2018. The income in the first six months of 2019 was primarily due to the pre-tax gain recognized on the sale of the Pine Bend facility of $45 million, partially offset by foreign currency transaction losses. The income in the first six months of 2018 was due to a combination of changes in legal reserves, unrealized foreign currency gains pertaining to British pound denominated intercompany loans that have not been permanently invested and a gain due to the recovery of certain precious metals used in the manufacturing process.

Equity in Earnings of Operating Affiliates

Equity in earnings of operating affiliates was $8 million in the first six months of 2019 compared to $25 million in the first six months of 2018. Earnings in the first six months of 2018 includes approximately $19 million related to the net after-tax impact of a settlement reached between NGC and PLNL of an arbitration proceeding regarding PLNL’s claims for damages due to historical natural gas supply curtailments. See above under “Items Affecting Comparability of Results—PLNL settlement income” for additional information.

Interest Expense—Net

Net interest expense was $111 million in the first six months of 2019 compared to $116 million in the first six months of 2018. The $5 million decrease is due primarily to an increase in interest income.

Income Taxes

For the six months ended June 30, 2019, we recorded an income tax provision of $94 million on pre-tax income of $532 million, or an effective tax rate of 17.7%, compared to an income tax provision of $61 million on pre-tax income of $323 million, or an effective tax rate of 18.8%, for the six months ended June 30, 2018.

For the six months ended June 30, 2019, our income tax provision includes an incentive tax credit from the State of Louisiana of $30 million, net of federal income tax, related to certain capital projects at our Donaldsonville, Louisiana complex.

Our effective tax rate is impacted by earnings attributable to the noncontrolling interests in CFN, and in the first quarter of 2018 by earnings attributable to the noncontrolling interests in TNCLP, as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interests. Our effective tax rate for the six months ended June 30, 2019 of 17.7%, which is based on pre-tax income of $532 million, would be 20.1% exclusive of the earnings attributable to the noncontrolling interests of $65 million. Our effective tax rate for the six months ended June 30, 2018 of 18.8%, which is based on pre-tax income of $323 million, would be 22.4% exclusive of the earnings attributable to the noncontrolling interests of $51 million.

On April 2, 2018, we acquired the TNCLP Public Units. Our effective tax rate in the first six months of 2018 was impacted by a $20 million reduction to our deferred tax liability as a result of the change in our effective state income tax rate as a result of the implementation of legal entity structure changes related to the acquisition.

See Note 10—Income Taxes and Note 14—Noncontrolling Interests for additional information.

Net Earnings Attributable to Noncontrolling Interests

Net earnings attributable to noncontrolling interests increased $14 million in the first six months of 2019 compared to the first six months of 2018 due to higher earnings from CFN driven by higher average selling prices due to the impact of a tighter global nitrogen supply and demand balance and lower realized natural gas costs, partially offset by the reduction in noncontrolling interests due to the April 2, 2018 purchase of the noncontrolling interests in TNCLP. In the six months ended June 30, 2018, earnings attributable to noncontrolling interests in TNCLP was $8 million.

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CF INDUSTRIES HOLDINGS, INC.

Diluted Net Earnings Per Share Attributable to Common Stockholders

Net earnings per share attributable to common stockholders increased $0.77 to $1.67 per diluted share in the first six months of 2019 from $0.90 per diluted share in the first six months of 2018. This increase is due primarily to higher gross margin driven by higher selling prices due to the impact of a tighter global nitrogen supply and demand balance and a 5% reduction in diluted weighted-average common shares outstanding due to repurchases made under our share repurchase programs.

Operating Results by Business Segment

Our reportable segments consist of ammonia, granular urea, UAN, AN and Other. These segments are differentiated by products. Our management uses gross margin to evaluate segment performance and allocate resources. Total other operating costs and expenses (consisting of selling, general and administrative expenses and other operating—net) and non-operating expenses (interest and income taxes), are centrally managed and are not included in the measurement of segment profitability reviewed by management. The following table presents summary operating results by business segment:

	Ammonia			Granular Urea(1)			UAN(1)			AN(1)			Other(1)			Consolidated
	(in millions, except percentages)
Three months ended June 30, 2019
Net sales	$	473		$	433		$	369		$	126		$	101		$	1,502
Cost of sales	300			251			277			94			81			1,003
Gross margin	$	173		$	182		$	92		$	32		$	20		$	499
Gross margin percentage	36.6		%	42.0		%	24.9		%	25.4		%	19.8		%	33.2		%
Three months ended June 30, 2018
Net sales	$	374		$	360		$	339		$	124		$	103		$	1,300
Cost of sales	272			255			258			117			86			988
Gross margin	$	102		$	105		$	81		$	7		$	17		$	312
Gross margin percentage	27.3		%	29.2		%	23.9		%	5.6		%	16.5		%	24.0		%
Six months ended June 30, 2019
Net sales	$	660		$	776		$	625		$	253		$	189		$	2,503
Cost of sales	466			479			472			208			159			1,784
Gross margin	$	194		$	297		$	153		$	45		$	30		$	719
Gross margin percentage	29.4		%	38.3		%	24.5		%	17.8		%	15.9		%	28.7		%
Six months ended June 30, 2018
Net sales	$	586		$	624		$	622		$	224		$	201		$	2,257
Cost of sales	460			444			488			191			172			1,755
Gross margin	$	126		$	180		$	134		$	33		$	29		$	502
Gross margin percentage	21.5		%	28.8		%	21.5		%	14.7		%	14.4		%	22.2		%

_______________________________________________________________________________

⁽¹⁾  The cost of products that are upgraded into other products is transferred at cost into the upgraded product results.

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CF INDUSTRIES HOLDINGS, INC.

Ammonia Segment

Our ammonia segment produces anhydrous ammonia (ammonia), which is our most concentrated nitrogen fertilizer as it contains 82% nitrogen. The results of our ammonia segment consist of sales of ammonia to external customers. In addition, ammonia is the “basic” nitrogen product that we upgrade into other nitrogen products such as granular urea, UAN and AN. We produce ammonia at all of our nitrogen manufacturing complexes.

The following table presents summary operating data for our ammonia segment:

	Three Months Ended June 30,											Six Months Ended June 30,
	2019			2018			2019 v. 2018					2019			2018			2019 v. 2018
	(dollars in millions, except per ton amounts)
Net sales	$	473		$	374		$	99		26	%	$	660		$	586		$	74		13	%
Cost of sales	300			272			28			10	%	466			460			6			1	%
Gross margin	$	173		$	102		$	71		70	%	$	194		$	126		$	68		54	%
Gross margin percentage	36.6		%	27.3		%	9.3		%			29.4		%	21.5		%	7.9		%
Sales volume by product tons (000s)	1,222			1,094			128			12	%	1,828			1,758			70			4	%
Sales volume by nutrient tons (000s)(1)	1,002			898			104			12	%	1,499			1,442			57			4	%
Average selling price per product ton	$	387		$	342		$	45		13	%	$	361		$	333		$	28		8	%
Average selling price per nutrient ton(1)	$	472		$	416		$	56		13	%	$	440		$	406		$	34		8	%
Gross margin per product ton	$	142		$	93		$	49		53	%	$	106		$	72		$	34		47	%
Gross margin per nutrient ton(1)	$	173		$	114		$	59		52	%	$	129		$	87		$	42		48	%
Depreciation and amortization	$	53		$	52		$	1		2	%	$	82		$	77		$	5		6	%
Unrealized net mark-to-market gain on natural gas derivatives	$	—		$	(1	)	$	1		100	%	$	—		$	(2	)	$	2		100	%

_______________________________________________________________________________

⁽¹⁾  Ammonia represents 82% nitrogen content. Nutrient tons represent the equivalent tons of nitrogen within the product tons.

Second Quarter of 2019 Compared to Second Quarter of 2018

Net Sales.    Net sales in our ammonia segment increased by $99 million, or 26%, in the second quarter of 2019 from the second quarter of 2018 due primarily to a 13% increase in average selling prices and a 12% increase in sales volume. Average selling prices increased to $387 per ton in the second quarter of 2019 compared to $342 in the comparable period of 2018 due primarily to the impact of a tighter nitrogen supply and demand balance. Sales volume was higher due to the delay in the spring application season that resulted in high inventory levels entering the second quarter as volume typically shipped in the first quarter shipped in the second quarter of 2019.

Cost of Sales.    Cost of sales in our ammonia segment averaged $245 per ton in the second quarter of 2019, a 2% decrease from $249 per ton in the comparable period of 2018. The decrease is due primarily to lower costs associated with plant turnaround and maintenance activity, partially offset by higher realized natural gas costs in cost of sales in the second quarter of 2019 as compared to the second quarter of 2018.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net Sales.    Net sales in our ammonia segment increased by $74 million, or 13%, in the six months ended June 30, 2019 from the six months ended June 30, 2018 due primarily to an 8% increase in average selling prices and a 4% increase in sales volume. The increase in selling prices was due to the impact of a tighter nitrogen supply and demand balance. Sales volume was higher due to greater supply availability as a result of increased production.

Cost of Sales.    Cost of sales in our ammonia segment averaged $255 per ton in the six months ended June 30, 2019, a 2% decrease from $261 per ton in the comparable period of 2018, reflecting the impact of lower costs associated with plant turnaround and maintenance activity, partially offset by higher realized natural gas costs.

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CF INDUSTRIES HOLDINGS, INC.

Granular Urea Segment

Our granular urea segment produces granular urea, which contains 46% nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of our solid nitrogen fertilizers. Granular urea is produced at our Donaldsonville, Louisiana; Medicine Hat, Alberta; and Port Neal, Iowa, nitrogen complexes.

The following table presents summary operating data for our granular urea segment:

	Three Months Ended June 30,											Six Months Ended June 30,
	2019			2018			2019 v. 2018					2019			2018			2019 v. 2018
	(dollars in millions, except per ton amounts)
Net sales	$	433		$	360		$	73		20	%	$	776		$	624		$	152		24	%
Cost of sales	251			255			(4		)	(2	)%	479			444			35			8	%
Gross margin	$	182		$	105		$	77		73	%	$	297		$	180		$	117		65	%
Gross margin percentage	42.0		%	29.2		%	12.8		%			38.3		%	28.8		%	9.5		%
Sales volume by product tons (000s)	1,496			1,434			62			4	%	2,680			2,416			264			11	%
Sales volume by nutrient tons (000s)(1)	688			659			29			4	%	1,233			1,111			122			11	%
Average selling price per product ton	$	289		$	251		$	38		15	%	$	290		$	258		$	32		12	%
Average selling price per nutrient ton(1)	$	629		$	546		$	83		15	%	$	629		$	562		$	67		12	%
Gross margin per product ton	$	122		$	73		$	49		67	%	$	111		$	75		$	36		48	%
Gross margin per nutrient ton(1)	$	265		$	159		$	106		67	%	$	241		$	162		$	79		49	%
Depreciation and amortization	$	79		$	81		$	(2	)	(2	)%	$	145		$	140		$	5		4	%
Unrealized net mark-to-market (gain) loss on natural gas derivatives	$	—		$	(1	)	$	1		100	%	$	1		$	(2	)	$	3		N/M

_______________________________________________________________________________

N/M—Not Meaningful

⁽¹⁾  Granular urea represents 46% nitrogen content. Nutrient tons represent the tons of nitrogen within the product tons.

Second Quarter of 2019 Compared to Second Quarter of 2018

Net Sales.    Net sales in our granular urea segment increased $73 million, or 20%, in the second quarter of 2019 from the second quarter of 2018 due primarily to a 15% increase in average selling prices and a 4% increase in sales volume. Average selling prices increased to $289 per ton in the second quarter of 2019 compared to $251 per ton in the comparable period of 2018. The increase was due primarily to the impact of a tighter global nitrogen supply and demand balance and the impact high water levels and flooding had on the shipping and logistics on inland rivers, including limiting access to the U.S. Gulf for imports. Sales volume was higher due to strong demand resulting from a delayed spring application season and greater supply availability as a result of our decision to increase granular urea production.

Cost of Sales.    Cost of sales in our granular urea segment averaged $167 per ton in the second quarter of 2019, a 6% decrease from $178 per ton in the comparable period of 2018, driven by higher plant efficiencies and lower realized natural gas costs.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net Sales.    Net sales in our granular urea segment increased $152 million, or 24%, in the six months ended June 30, 2019 from the six months ended June 30, 2018 due primarily to a 12% increase in average selling prices and an 11% increase in sales volume. Average selling prices increased to $290 per ton in the six months ended June 30, 2019 compared to $258 per ton in the comparable period of 2018. The increase was due primarily to the impact of a tighter global nitrogen supply and demand balance and the impact high water levels and flooding had on the shipping and logistics on inland rivers, including limiting access to the U.S. Gulf for imports. Sales volume was higher due to greater supply availability as a result of our decision to increase granular urea production in the six months ended June 30, 2019.

Cost of Sales.    Cost of sales in our granular urea segment averaged $179 per ton in the six months ended June 30, 2019, a 2% decrease from $183 per ton in the comparable period of 2018. The decrease was due primarily to higher plant efficiencies.

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CF INDUSTRIES HOLDINGS, INC.

UAN Segment

Our UAN segment produces urea ammonium nitrate solution (UAN). UAN, a liquid fertilizer product with a nitrogen content that typically ranges from 28% to 32%, is produced by combining urea and ammonium nitrate. UAN is produced at our nitrogen complexes in Courtright, Ontario; Donaldsonville, Louisiana; Port Neal, Iowa; Verdigris, Oklahoma; Woodward, Oklahoma; and Yazoo City, Mississippi.

The following table presents summary operating data for our UAN segment:

	Three Months Ended June 30,											Six Months Ended June 30,
	2019			2018			2019 v. 2018					2019			2018			2019 v. 2018
	(dollars in millions, except per ton amounts)
Net sales	$	369		$	339		$	30		9	%	$	625		$	622		$	3		—	%
Cost of sales	277			258			19			7	%	472			488			(16		)	(3	)%
Gross margin	$	92		$	81		$	11		14	%	$	153		$	134		$	19		14	%
Gross margin percentage	24.9		%	23.9		%	1.0		%			24.5		%	21.5		%	3.0		%
Sales volume by product tons (000s)	1,871			1,820			51			3	%	3,139			3,489			(350		)	(10	)%
Sales volume by nutrient tons (000s)(1)	591			575			16			3	%	987			1,102			(115		)	(10	)%
Average selling price per product ton	$	197		$	186		$	11		6	%	$	199		$	178		$	21		12	%
Average selling price per nutrient ton(1)	$	624		$	590		$	34		6	%	$	633		$	564		$	69		12	%
Gross margin per product ton	$	49		$	45		$	4		9	%	$	49		$	38		$	11		29	%
Gross margin per nutrient ton(1)	$	156		$	141		$	15		11	%	$	155		$	122		$	33		27	%
Depreciation and amortization	$	71		$	72		$	(1	)	(1	)%	$	117		$	135		$	(18	)	(13	)%
Unrealized net mark-to-market gain on natural gas derivatives	$	(1	)	$	(2	)	$	1		50	%	$	—		$	(3	)	$	3		100	%

_______________________________________________________________________________

⁽¹⁾  UAN represents between 28% and 32% of nitrogen content, depending on the concentration specified by the customer. Nutrient tons represent the tons of nitrogen within the product tons.

Second Quarter of 2019 Compared to Second Quarter of 2018

Net Sales.    Net sales in our UAN segment increased $30 million, or 9%, in the second quarter of 2019 from the second quarter of 2018 due primarily to a 6% increase in average selling prices and a 3% increase in sales volume. Average selling prices increased to $197 per ton in the second quarter of 2019 compared to $186 per ton in the comparable period of 2018 due primarily to the impact of a tighter global nitrogen supply and demand balance and the impact high water levels and flooding had on the shipping and logistics on inland rivers. The increase in sales volume was due primarily to demand resulting from the delayed spring application season as well as higher inventory entering the quarter.

Cost of Sales.    Cost of sales in our UAN segment averaged $148 per ton in the second quarter of 2019, a 5% increase from $141 per ton in the second quarter of 2018 primarily driven by higher maintenance activity and higher freight costs due to the mix of transportation modes.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net Sales.    Net sales in our UAN segment increased $3 million in the six months ended June 30, 2019 from the six months ended June 30, 2018 due to a 12% increase in average selling prices, partially offset by a 10% decline in sales volume. Average selling prices increased to $199 per ton in the six months ended June 30, 2019, compared to $178 per ton in the comparable period of 2018, due primarily to the impact of a tighter global nitrogen supply and demand balance and the impact high water levels and flooding had on the shipping and logistics on inland rivers. The decrease in sales volume was due primarily to lower production due to the focus on granular urea production in 2019 and the impact of late planting in North America that delayed some fertilizer shipments and applications into the third quarter.

In April 2019, the European Commission (the Commission) published a regulation imposing provisional anti-dumping duties on imports to the European Union of UAN manufactured in Russia, Trinidad and Tobago and the United States. The regulation included a rate of 22.6% for the provisional anti-dumping duty applicable to imports of UAN manufactured in the United States. In July 2019, the Commission announced its intention to impose definitive anti-dumping measures in the form of fixed duty rates. For imports of UAN manufactured in the United States, the fixed duty rate is €29.48 per metric ton. This proposal will be presented to the European Member States for discussion and approval.

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Cost of Sales.    Cost of sales in our UAN segment averaged $150 per ton in the six months ended June 30, 2019, a 7% increase from $140 per ton in the comparable period of 2018. The increase was due primarily to higher realized natural gas costs, higher maintenance activity and higher freight costs due to the mix of transportation modes.

AN Segment

Our AN segment produces ammonium nitrate (AN). AN is a nitrogen-based product with a nitrogen content between 29% and 35%. AN is used as nitrogen fertilizer and is also used by industrial customers for commercial explosives and blasting systems. AN is produced at our nitrogen complexes in Yazoo City, Mississippi and Ince and Billingham, United Kingdom.

The following table presents summary operating data for our AN segment:

	Three Months Ended June 30,											Six Months Ended June 30,
	2019			2018			2019 v. 2018					2019			2018			2019 v. 2018
	(dollars in millions, except per ton amounts)
Net sales	$	126		$	124		$	2		2	%	$	253		$	224		$	29		13	%
Cost of sales	94			117			(23		)	(20	)%	208			191			17			9	%
Gross margin	$	32		$	7		$	25		N/M		$	45		$	33		$	12		36	%
Gross margin percentage	25.4		%	5.6		%	19.8		%			17.8		%	14.7		%	3.1		%
Sales volume by product tons (000s)	528			568			(40		)	(7	)%	1,029			985			44			4	%
Sales volume by nutrient tons (000s)(1)	179			193			(14		)	(7	)%	345			333			12			4	%
Average selling price per product ton	$	239		$	218		$	21		10	%	$	246		$	227		$	19		8	%
Average selling price per nutrient ton(1)	$	704		$	642		$	62		10	%	$	733		$	673		$	60		9	%
Gross margin per product ton	$	61		$	12		$	49		N/M		$	44		$	34		$	10		29	%
Gross margin per nutrient ton(1)	$	179		$	36		$	143		N/M		$	130		$	99		$	31		31	%
Depreciation and amortization	$	21		$	14		$	7		50	%	$	43		$	32		$	11		34	%
Unrealized net mark-to-market (gain) loss on natural gas derivatives	$	—		$	—		$	—		—	%	$	—		$	—		$	—		—	%

_______________________________________________________________________________

N/M—Not Meaningful

⁽¹⁾  Nutrient tons represent the tons of nitrogen within the product tons.

Second Quarter of 2019 Compared to Second Quarter of 2018

Net Sales.    Net sales in our AN segment increased $2 million, or 2%, in the second quarter of 2019 from the second quarter of 2018 due to a 10% increase in average selling prices, partially offset by a 7% decrease in sales volume. Average selling prices increased to $239 per ton in the second quarter of 2019 compared to $218 per ton in the second quarter of 2018 due primarily to the impact of a tighter global nitrogen supply and demand balance. Sales volume declined due primarily to lower beginning inventory in the United Kingdom entering the second quarter, which reflected the impact of higher sales volume in the first quarter of 2019 as a result of an earlier start of the spring application season in the United Kingdom.

Cost of Sales.  Cost of sales in our AN segment averaged $178 per ton in the second quarter of 2019, a 14% decrease from $206 per ton in the comparable period of 2018. The decrease was due primarily to lower realized natural gas costs.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net Sales.    Net sales in our AN segment increased $29 million, or 13%, in the six months ended June 30, 2019 from the six months ended June 30, 2018 due primarily to an 8% increase in average selling prices and a 4% increase in sales volume. Average selling prices increased to $246 per ton in the six months ended June 30, 2019 compared to $227 per ton in the comparable period of 2018 due primarily to the impact of a tighter global nitrogen supply and demand balance. Sales volume increased as a result of higher domestic sales in the United Kingdom and North America due to strong demand.

Cost of Sales.     Cost of sales in our AN segment averaged $202 per ton in the six months ended June 30, 2019, a 5% increase from $193 per ton in the comparable period of 2018. The increase was due primarily to higher costs related to plant maintenance activity, partially offset by lower realized natural gas costs.

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Other Segment

Our Other segment primarily includes the following products:

• Diesel exhaust fluid (DEF) is an aqueous urea solution typically made with 32.5% high-purity urea and 67.5% deionized water.

• Urea liquor is a liquid product that we sell in concentrations of 40%, 50% and 70% urea as a chemical intermediate.

• Nitric acid is a nitrogen-based product with a nitrogen content of 22.2%.

• Compound fertilizer products (NPKs) are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium.

The following table presents summary operating data for our Other segment:

	Three Months Ended June 30,											Six Months Ended June 30,
	2019			2018			2019 v. 2018					2019			2018			2019 v. 2018
	(dollars in millions, except per ton amounts)
Net sales	$	101		$	103		$	(2	)	(2	)%	$	189		$	201		$	(12	)	(6	)%
Cost of sales	81			86			(5		)	(6	)%	159			172			(13		)	(8	)%
Gross margin	$	20		$	17		$	3		18	%	$	30		$	29		$	1		3	%
Gross margin percentage	19.8		%	16.5		%	3.3		%			15.9		%	14.4		%	1.5		%
Sales volume by product tons (000s)	599			622			(23		)	(4	)%	1,127			1,193			(66		)	(6	)%
Sales volume by nutrient tons (000s)(1)	121			122			(1		)	(1	)%	224			233			(9		)	(4	)%
Average selling price per product ton	$	169		$	166		$	3		2	%	$	168		$	168		$	—		—	%
Average selling price per nutrient ton(1)	$	835		$	844		$	(9	)	(1	)%	$	844		$	863		$	(19	)	(2	)%
Gross margin per product ton	$	33		$	27		$	6		22	%	$	27		$	24		$	3		13	%
Gross margin per nutrient ton(1)	$	165		$	139		$	26		19	%	$	134		$	124		$	10		8	%
Depreciation and amortization	$	19		$	14		$	5		36	%	$	36		$	31		$	5		16	%
Unrealized net mark-to-market gain on natural gas derivatives	$	—		$	(1	)	$	1		100	%	$	—		$	(1	)	$	1		100	%

_______________________________________________________________________________

⁽¹⁾  Nutrient tons represent the tons of nitrogen within the product tons.

Second Quarter of 2019 Compared to Second Quarter of 2018

Net Sales.    Net sales in our Other segment decreased by $2 million, or 2%, in the second quarter of 2019 from the second quarter of 2018 due to a 4% decrease in sales volume, partially offset by a 2% increase in average selling prices. The decrease in sales volume was due primarily to lower nitric acid and NPK sales volume, partially offset by higher DEF sales volume. The increase in average selling prices is due primarily to the mix of products sold.

Cost of Sales.    Cost of sales in our Other segment averaged $136 per ton in the second quarter of 2019, a 2% decrease from $139 per ton in the comparable period of 2018 due primarily to lower realized natural gas costs, partially offset by higher freight costs.

Six Months Ended June 30, 2019 Compared to Six Months Ended June 30, 2018

Net Sales.    Net sales in our Other segment decreased by $12 million, or 6%, in the six months ended June 30, 2019 from the six months ended June 30, 2018 due to a 6% decrease in sales volume. The decrease in sales volume was due primarily to lower NPK and nitric acid sales volume, partially offset by higher DEF sales volume.

Cost of Sales.    Cost of sales in our Other segment averaged $141 per ton in the six months ended June 30, 2019, a 2% decrease from $144 per ton in the comparable period of 2018 due primarily to lower realized natural gas costs, partially offset by higher freight costs.

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Liquidity and Capital Resources

Our primary uses of cash are generally for operating costs, working capital, capital expenditures, debt service, investments, taxes, share repurchases and dividends. Our working capital requirements are affected by several factors, including demand for our products, selling prices, raw material costs, freight costs and seasonal factors inherent in the business. Generally, our primary source of cash is cash from operations, which includes cash generated by customer advances. We may also from time to time access the capital markets or engage in borrowings under our credit agreement.

During the six months ended June 30, 2019, we repurchased approximately 4.2 million shares of our common stock for $178 million. See discussion under “Share Repurchase Programs,” below, for further information.

At June 30, 2019, we were in compliance with all applicable covenant requirements under our Revolving Credit Agreement, Public Senior Notes and Senior Secured Notes. There were no borrowings outstanding under the Revolving Credit Agreement as of June 30, 2019 or December 31, 2018, or during the six months ended June 30, 2019. See discussion under “Debt,” below, for further information.

Our cash and cash equivalents balance was $858 million and $682 million as of June 30, 2019 and December 31, 2018, respectively.

Cash Equivalents

Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less. Under our short-term investment policy, we may invest our cash balances, either directly or through mutual funds, in several types of investment-grade securities, including notes and bonds issued by governmental entities or corporations. Securities issued by governmental entities include those issued directly by the U.S. and Canadian federal governments; those issued by state, local or other governmental entities; and those guaranteed by entities affiliated with governmental entities.

Share Repurchase Programs

On August 1, 2018, the Board authorized the repurchase of up to $500 million of CF Holdings common stock through June 30, 2020 (the 2018 Share Repurchase Program). In 2018, we completed the 2018 Share Repurchase Program with the repurchase of 10.9 million shares for $500 million, of which $33 million was accrued and unpaid at December 31, 2018. In February 2019, we retired all 10.9 million shares that were repurchased under the 2018 Share Repurchase Program.

On February 13, 2019, the Board authorized the repurchase of up to $1 billion of CF Holdings common stock through December 31, 2021 (the 2019 Share Repurchase Program). Repurchases under the 2019 Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions, block transactions or otherwise. The manner, timing and amount of repurchases will be determined by our management based on the evaluation of market conditions, stock price, and other factors. During the six months ended June 30, 2019, we repurchased approximately 4.2 million shares for $178 million, of which $2 million was accrued and unpaid at June 30, 2019. In June 2019, we retired approximately 4.2 million shares that were repurchased under the 2019 Share Repurchase Program. At June 30, 2019, we held 42,608 shares of treasury stock.

Capital Spending

We make capital expenditures to sustain our asset base, increase our capacity, improve plant efficiency and comply with various environmental, health and safety requirements. Capital expenditures totaled $154 million in the first six months of 2019 compared to $145 million in the first six months of 2018.

Capital expenditures in 2019 are estimated to be in the range of $400 to $450 million. Planned capital expenditures are subject to change due to delays in regulatory approvals or permitting, unanticipated increases in cost, changes in scope and completion time, performance of third parties, delays in the receipt of equipment, adverse weather, defects in materials and workmanship, labor or material shortages, transportation constraints, acceleration or delays in the timing of the work and other unforeseen difficulties.

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Debt

Revolving Credit Agreement

We have a senior secured revolving credit agreement (the Revolving Credit Agreement) providing for a revolving credit facility of up to $750 million with a maturity of September 18, 2020. The Revolving Credit Agreement includes a letter of credit sub-limit of $125 million. Borrowings under the Revolving Credit Agreement may be used for working capital and general corporate purposes. CF Industries is the borrower under the Revolving Credit Agreement and may also designate as borrowers one or more wholly owned subsidiaries that are organized in the United States or any state thereof, or the District of Columbia.

Borrowings under the Revolving Credit Agreement may be denominated in U.S. dollars, Canadian dollars, euro and British pounds, and bear interest at a per annum rate equal to an applicable eurocurrency rate or base rate plus, in either case, a specified margin, and the borrowers are required to pay an undrawn commitment fee on the undrawn portion of the commitments under the Revolving Credit Agreement and customary letter of credit fees. The specified margin and the amount of the commitment fee depend on CF Holdings’ credit rating at the time.

The guarantors under the Revolving Credit Agreement are currently comprised of CF Holdings and CF Holdings’ wholly owned subsidiaries CF Industries Enterprises, LLC (CFE), CF Industries Sales, LLC (CFS), CF USA Holdings, LLC (CF USA) and CF Industries Distribution Facilities, LLC (CFIDF).

As of June 30, 2019, we had excess borrowing capacity under the Revolving Credit Agreement of $750 million and no outstanding letters of credit. In addition, there were no borrowings outstanding under the Revolving Credit Agreement as of June 30, 2019 or December 31, 2018, or during the six months ended June 30, 2019.

The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants, including financial covenants. As of June 30, 2019, we were in compliance with all covenants under the Revolving Credit Agreement.

Letters of Credit

In addition to the letter of credit capacity under the Revolving Credit Agreement, as described above, we have also entered into a bilateral agreement with capacity to issue letters of credit up to $145 million (reflecting an increase of $20 million in January 2019). As of June 30, 2019, approximately $131 million of letters of credit were outstanding under this agreement.

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Senior Notes

Long-term debt, including current maturities of long-term debt, presented on our consolidated balance sheets as of June 30, 2019 and December 31, 2018 consisted of the following Public Senior Notes (unsecured) and Senior Secured Notes issued by CF Industries:

	Effective Interest Rate	June 30, 2019				December 31, 2018
		Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
		(in millions)
Public Senior Notes:
7.125% due May 2020	7.529%	$	500	$	498	$	500	$	497
3.450% due June 2023	3.562%	750		747		750		747
5.150% due March 2034	5.279%	750		740		750		740
4.950% due June 2043	5.031%	750		742		750		741
5.375% due March 2044	5.465%	750		741		750		741
Senior Secured Notes:
3.400% due December 2021	3.782%	500		495		500		495
4.500% due December 2026	4.759%	750		738		750		737
Total long-term debt		$	4,750	$	4,701	$	4,750	$	4,698
Less: Current maturities of long-term debt		500		498		—		—
Long-term debt, net of current maturities		$	4,250	$	4,203	$	4,750	$	4,698

_______________________________________________________________________________

⁽¹⁾  Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $11 million as of both June 30, 2019 and December 31, 2018, and total deferred debt issuance costs were $38 million and $41 million as of June 30, 2019 and December 31, 2018, respectively. 

Public Senior Notes

Under the indentures (including the applicable supplemental indentures) governing our senior notes due 2020, 2023, 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings and CF Holdings’ wholly owned subsidiaries CFE, CFS, CF USA and CFIDF. CFE, CFS, CF USA and CFIDF became subsidiary guarantors of the Public Senior Notes as a result of their becoming guarantors under the Revolving Credit Agreement. Interest on the Public Senior Notes is payable semiannually, and the Public Senior Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices.

Senior Secured Notes

On November 21, 2016, CF Industries issued $500 million aggregate principal amount of 3.400% senior secured notes due 2021 (the 2021 Notes) and $750 million aggregate principal amount of 4.500% senior secured notes due 2026 (the 2026 Notes, and together with the 2021 Notes, the Senior Secured Notes). CF Holdings and the subsidiary guarantors of the Public Senior Notes are also guarantors of the Senior Secured Notes. Interest on the Senior Secured Notes is payable semiannually on December 1 and June 1, and the Senior Secured Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices.

Forward Sales and Customer Advances

We offer our customers the opportunity to purchase products from us on a forward basis at prices and on delivery dates we propose. Therefore, our reported fertilizer selling prices and margins may differ from market spot prices and margins available at the time of shipment.

Customer advances, which typically represent a portion of the contract’s value, are received shortly after the contract is executed, with any remaining unpaid amount generally being collected by the time control transfers to the customer, thereby reducing or eliminating the accounts receivable related to such sales. Any cash payments received in advance from customers in connection with forward sales contracts are reflected on our consolidated balance sheets as a current liability until control transfers and revenue is recognized. As of June 30, 2019 and December 31, 2018, we had $21 million and $149 million, respectively, in customer advances on our consolidated balance sheets.

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While customer advances are generally a significant source of liquidity, the level of forward sales contracts is affected by many factors including current market conditions and our customers’ outlook of future market fundamentals. During periods of declining prices, customers tend to delay purchasing fertilizer in anticipation that prices in the future will be lower than the current prices. If the level of sales under our forward sales programs were to decrease in the future, our cash received from customer advances would likely decrease and our accounts receivable balances would likely increase. Additionally, borrowing under the Revolving Credit Agreement could become necessary. Due to the volatility inherent in our business and changing customer expectations, we cannot estimate the amount of future forward sales activity.

Under our forward sales programs, a customer may delay delivery of an order due to weather conditions or other factors. These delays generally subject the customer to potential charges for storage or may be grounds for termination of the contract by us. Such a delay in scheduled shipment or termination of a forward sales contract due to a customer’s inability or unwillingness to perform may negatively impact our reported sales.

Derivative Financial Instruments

We may use derivative financial instruments to reduce our exposure to changes in prices for natural gas that will be purchased in the future. Natural gas is the largest and most volatile component of our manufacturing cost for nitrogen-based fertilizers. From time to time, we also use derivative financial instruments to reduce our exposure to changes in foreign currency exchange rates. Volatility in reported quarterly earnings can result from the unrealized mark-to-market adjustments in the value of the derivatives. As of June 30, 2019 and December 31, 2018, our open derivative contracts consisted of natural gas basis swaps for 10.3 million MMBtus and 6.6 million MMBtus, respectively.

Defined Benefit Pension Plans

We contributed $13 million to our pension plans during the six months ended June 30, 2019. Over the remainder of 2019, we expect to contribute an additional $48 million to our pension plans, or a total of approximately $61 million for the full year 2019.

Distribution on Noncontrolling Interest in CFN

On July 31, 2019, the CFN Board of Managers approved semi-annual distribution payments for the distribution period ended June 30, 2019 in accordance with CFN’s limited liability company agreement. On July 31, 2019, CFN distributed $100 million to CHS for the distribution period ended June 30, 2019.

Cash Flows

Operating Activities

Net cash provided by operating activities during the first six months of 2019 was $693 million, an increase of $95 million, as compared to $598 million in the first six months of 2018. This increase was due primarily to an increase in cash earnings generated by the business, partially offset by changes in working capital. Cash earnings from the business increased as net earnings in the first six months of 2019 increased by $176 million as compared to the first six months of 2018. The changes in working capital primarily include customer advances, as more customers prepaid their 2019 purchases by making customer advances in late 2018, accelerating cash receipts and impacting working capital.

Investing Activities

Net cash used in investing activities was $91 million in the first six months of 2019 as compared to $118 million in the first six months of 2018. During the first six months of 2019, capital expenditures totaled $154 million compared to $145 million in the first six months of 2018. Net cash used in investing activities in the first six months of 2019 included proceeds of $55 million related to the sale of our Pine Bend facility.

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Financing Activities

Net cash used in financing activities was $426 million in the first six months of 2019 compared to $583 million in the same period of 2018. Dividends paid on common stock during the six months ended June 30, 2019 and 2018 were $133 million and $140 million, respectively. The decrease in dividends was due to lower shares outstanding as a result of shares repurchased under our share repurchase programs in 2018 and 2019. In the first six months of 2019, we spent $209 million to repurchase shares of our common stock, which included approximately $33 million related to shares repurchased in late 2018 that were paid for in 2019. In the first six months of 2019, we repurchased approximately 4.2 million shares for approximately $178 million, of which $2 million was accrued and not yet settled at June 30, 2019. Distributions to noncontrolling interests totaled $86 million in the first six months of 2019 as compared to $59 million in the first six months of 2018. Net cash used in financing activities in the first six months of 2018 included $388 million related to our acquisition of all of the outstanding publicly traded common units of TNCLP.

Sale of Pine Bend Facility

In March of 2019, we entered into an agreement to sell our Pine Bend dry bulk storage and logistics facility located in Minnesota. In April of 2019, we completed the sale, received proceeds of $55 million and recognized a pre-tax gain of $45 million. The gain is reflected in other operating—net in our consolidated statement of operations for the three and six months ended June 30, 2019.

Contractual Obligations

As of June 30, 2019, there have been no material changes outside the ordinary course of business to our contractual obligations as described in our 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. See “Recent Accounting Pronouncements,” below for a discussion of our recent adoption of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842).

Critical Accounting Policies and Estimates

There were no changes to our significant accounting policies or estimates during the first six months of 2019.

Recent Accounting Pronouncements

See Note 2—New Accounting Standards for a discussion of recent accounting pronouncements, including our January 1, 2019 adoption of ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities.

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FORWARD-LOOKING STATEMENTS

From time to time, in this Quarterly Report on Form 10-Q as well as in other written reports and oral statements, we make forward-looking statements that are not statements of historical fact and may involve a number of risks and uncertainties. These statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our prospects, future developments and business strategies. We have used the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” or “would” and similar terms and phrases, including references to assumptions, to identify forward-looking statements in this document. These forward-looking statements are made based on currently available competitive, financial and economic data, our current expectations, estimates, forecasts and projections about the industries and markets in which we operate and management’s beliefs and assumptions concerning future events affecting us. These statements are not guarantees of future performance and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Therefore, our actual results may differ materially from what is expressed in or implied by any forward-looking statements. We want to caution you not to place undue reliance on any forward-looking statements. We do not undertake any responsibility to release publicly any revisions to these forward-looking statements to take into account events or circumstances that occur after the date of this document. Additionally, we do not undertake any responsibility to provide updates regarding the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by the forward-looking statements contained in this document.

Important factors that could cause actual results to differ materially from our expectations are disclosed under “Risk Factors” in Item 1A in our 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019. Such factors include, among others:

• the cyclical nature of our business and the impact of global supply and demand on our selling prices;

• the global commodity nature of our fertilizer products, the conditions in the international market for nitrogen products, and the intense global competition from other fertilizer producers;

• conditions in the U.S. and European agricultural industry;

• the volatility of natural gas prices in North America and Europe;

• difficulties in securing the supply and delivery of raw materials, increases in their costs or delays or interruptions in their delivery;

• reliance on third party providers of transportation services and equipment;

• the significant risks and hazards involved in producing and handling our products against which we may not be fully insured;

• our ability to manage our indebtedness;

• operating and financial restrictions imposed on us by the agreements governing our senior secured indebtedness;

• risks associated with our incurrence of additional indebtedness;

• our ability to maintain compliance with covenants under the agreements governing our indebtedness;

• downgrades of our credit ratings;

• risks associated with cyber security;

• weather conditions;

• risks associated with changes in tax laws and disagreements with taxing authorities;

• our reliance on a limited number of key facilities;

• potential liabilities and expenditures related to environmental, health and safety laws and regulations and permitting requirements;

• future regulatory restrictions and requirements related to greenhouse gas emissions;

• risks associated with expansions of our business, including unanticipated adverse consequences and the significant resources that could be required;

• the seasonality of the fertilizer business;

• the impact of changing market conditions on our forward sales programs;

• risks involving derivatives and the effectiveness of our risk measurement and hedging activities;

• risks associated with the operation or management of the CHS strategic venture, risks and uncertainties relating to the market prices of the fertilizer products that are the subject of our supply agreement with CHS over the life of the supply agreement, and the risk that any challenges related to the CHS strategic venture will harm our other business relationships;

• risks associated with our PLNL joint venture;

• acts of terrorism and regulations to combat terrorism;

• risks associated with international operations; and

• deterioration of global market and economic conditions.

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CF INDUSTRIES HOLDINGS, INC.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

There were no significant changes to our quantitative and qualitative disclosures about market risk during the six months ended June 30, 2019. Please refer to Part II, Item 7A. Quantitative and Qualitative Disclosures about Market Risk included in our 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019 for a more complete discussion of the market risks we encounter.

ITEM 4.    CONTROLS AND PROCEDURES.

        (a)    Disclosure Controls and Procedures.  The Company’s management, with the participation of the Company’s principal executive officer and principal financial officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, the Company’s principal executive officer and principal financial officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in (i) ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

        (b)    Changes in Internal Control Over Financial Reporting. There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS.

West Fertilizer Co.

On April 17, 2013, there was a fire and explosion at the West Fertilizer Co. fertilizer storage and distribution facility in West, Texas. According to published reports, 15 people were killed and approximately 200 people were injured in the incident, and the fire and explosion damaged or destroyed a number of homes and buildings around the facility. Various subsidiaries of CF Industries Holdings, Inc. (the CF Entities) were named as defendants along with other companies in lawsuits filed in 2013, 2014 and 2015 in the District Court of McLennan County, Texas by the City of West, individual residents of the County and other parties seeking recovery for damages allegedly sustained as a result of the explosion. The cases were consolidated for discovery and pretrial proceedings in the District Court of McLennan County under the caption “In re: West Explosion Cases.” The two-year statute of limitations expired on April 17, 2015. As of that date, over 400 plaintiffs had filed claims, including at least 9 entities, 325 individuals, and 80 insurance companies. Plaintiffs allege various theories of negligence, strict liability, and breach of warranty under Texas law. Although we do not own or operate the facility or directly sell our products to West Fertilizer Co., products that the CF Entities manufactured and sold to others were delivered to the facility and may have been stored at the West facility at the time of the incident.

The Court granted in part and denied in part the CF Entities’ Motions for Summary Judgment in August 2015. Over two hundred cases have been resolved pursuant to confidential settlements that have been or we expect will be fully funded by insurance. The remaining cases are in various stages of discovery and pre-trial proceedings. The next group of cases was reset for trial beginning on September 16, 2019. We believe we have strong legal and factual defenses and intend to continue defending the CF Entities vigorously in the pending lawsuits. The Company cannot provide a range of reasonably possible loss due to the lack of damages discovery for many of the remaining claims and the uncertain nature of this litigation, including uncertainties around the potential allocation of responsibility by a jury to other defendants or responsible third parties. The recognition of a potential loss in the future in the West Fertilizer Co. litigation could negatively affect our results in the period of recognition. However, based upon currently available information, including available insurance coverage, we do not believe that this litigation will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

53

CF INDUSTRIES HOLDINGS, INC.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The following table sets forth stock repurchases, on a trade date basis, for each of the three months of the quarter ended June 30, 2019.

	Issuer Purchases of Equity Securities
Period	Total number of shares (or units) purchased		Average price paid per share (or unit)(1)		Total number of shares (or units) purchased as part of publicly announced plans or programs(2)	Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs (in thousands)(2)
April 1, 2019 - April 30, 2019	482,743	(3)	$	43.50	482,732	$	919,001
May 1, 2019 - May 31, 2019	1,320,344	(4)	41.29		1,319,960	864,502
June 1, 2019 - June 30, 2019	974,874		43.64		974,874	821,961
Total	2,777,961		$	42.50	2,777,566

_______________________________________________________________________________

⁽¹⁾  Average price paid per share of CF Industries Holdings, Inc. (CF Holdings) common stock repurchased under the 2019 Stock Repurchase Program, as defined below, is the execution price, excluding commissions paid to brokers.

⁽²⁾  On February 13, 2019, our Board of Directors authorized management to repurchase CF Holdings common stock for a total expenditure of up to $1 billion through December 31, 2021 (the 2019 Stock Repurchase Program). This program is discussed in Note 15—Stockholders’ Equity, in the notes to the unaudited consolidated financial statements included in Part I.

⁽³⁾  Includes 11 shares withheld to pay employee tax obligations upon the lapse of restrictions on restricted stock units.

⁽⁴⁾  Includes 384 shares withheld to pay employee tax obligations upon the lapse of restrictions on restricted stock units.

ITEM 6.    EXHIBITS.

A list of exhibits filed with this Report on Form 10-Q (or incorporated by reference to exhibits previously filed or furnished) is provided in the Exhibit Index on page 55 of this report.

54

CF INDUSTRIES HOLDINGS, INC.

EXHIBIT INDEX

Exhibit No.	Description
10.1	Transition and Separation Agreement, dated as of May 30, 2019, between CF Industries Holdings, Inc. and Dennis P. Kelleher (incorporated by reference to Exhibit 10.1 to CF Industries Holdings, Inc.’s Current Report on Form 8-K filed with the SEC on May 31, 2019, File No. 001-32597)
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from CF Industries Holdings, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in Inline XBRL (eXtensible Business Reporting Language): (1) Consolidated Statements of Operations, (2) Consolidated Statements of Comprehensive Income, (3) Consolidated Balance Sheets, (4) Consolidated Statements of Equity, (5) Consolidated Statements of Cash Flows, and (6) the Notes to Unaudited Consolidated Financial Statements
104	Cover Page Interactive Data File

55

CF INDUSTRIES HOLDINGS, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CF INDUSTRIES HOLDINGS, INC.
Date: August 1, 2019	By:	/s/ W. ANTHONY WILL
		W. Anthony Will  President and Chief Executive Officer (Principal Executive Officer)
Date: August 1, 2019	By:	/s/ DENNIS P. KELLEHER
		Dennis P. Kelleher  Senior Vice President and Chief Financial Officer (Principal Financial Officer)

56

EX-31.1

CF INDUSTRIES HOLDINGS, INC.

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, W. Anthony Will, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of CF Industries Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 1, 2019	/s/ W. ANTHONY WILL
		W. Anthony Will President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

CF INDUSTRIES HOLDINGS, INC.

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Dennis P. Kelleher, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of CF Industries Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 1, 2019	/s/ DENNIS P. KELLEHER
		Dennis P. Kelleher Senior Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

CF INDUSTRIES HOLDINGS, INC.

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of CF Industries Holdings, Inc. (the Company) for the period ended June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, W. Anthony Will, as President and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ W. ANTHONY WILL
W. Anthony Will President and Chief Executive Officer (Principal Executive Officer)
Date:	August 1, 2019

EX-32.2

CF INDUSTRIES HOLDINGS, INC.

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of CF Industries Holdings, Inc. (the Company) for the period ended June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Dennis P. Kelleher, as Senior Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ DENNIS P. KELLEHER
Dennis P. Kelleher Senior Vice President and Chief Financial Officer (Principal Financial Officer)
Date:	August 1, 2019

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 29, 2019
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-32597
Entity Registrant Name	CF INDUSTRIES HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2697511
Entity Address, Address Line One	4 Parkway North, Suite 400
Entity Address, City or Town	Deerfield,
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	847
Local Phone Number	405-2400
Title of 12(b) Security	common stock, par value $0.01 per share
Trading Symbol	CF
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		218,325,839
Entity Central Index Key	0001324404
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net sales	$ 1,502.0	$ 1,300.0	$ 2,503.0	$ 2,257.0
Cost of sales	1,003.0	988.0	1,784.0	1,755.0
Gross margin	499.0	312.0	719.0	502.0
Selling, general and administrative expenses	62.0	53.0	120.0	110.0
Other operating—net	(37.0)	3.0	(33.0)	(18.0)
Total other operating costs and expenses	25.0	56.0	87.0	92.0
Equity in earnings of operating affiliate	1.0	18.0	8.0	25.0
Operating earnings	475.0	274.0	640.0	435.0
Interest expense	59.0	61.0	119.0	121.0
Interest income	(4.0)	(2.0)	(8.0)	(5.0)
Other non-operating—net	(2.0)	(3.0)	(3.0)	(4.0)
Earnings before income taxes	422.0	218.0	532.0	323.0
Income tax provision (benefit)	102.0	44.0	94.0	61.0
Net earnings	320.0	174.0	438.0	262.0
Less: Net earnings attributable to noncontrolling interests	37.0	26.0	65.0	51.0
Net earnings attributable to common stockholders	$ 283.0	$ 148.0	$ 373.0	$ 211.0
Net earnings (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ 1.28	$ 0.63	$ 1.68	$ 0.90
Diluted (in dollars per share)	$ 1.28	$ 0.63	$ 1.67	$ 0.90
Weighted average common shares outstanding:
Basic (in shares)	221.1	234.0	222.2	233.9
Diluted (in shares)	222.3	234.9	223.4	234.8
Dividends declared per common share (in dollars per share)	$ 0.30	$ 0.30	$ 0.60	$ 0.60

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net earnings	$ 320	$ 174	$ 438	$ 262
Other comprehensive (loss) income:
Foreign currency translation adjustment—net of taxes	(8)	(67)	24	(50)
Unrealized loss on securities—net of taxes	0	(1)	0	(1)
Defined benefit plans—net of taxes	5	7	3	6
Total other comprehensive income	(3)	(61)	27	(45)
Comprehensive income	317	113	465	217
Less: Comprehensive income attributable to noncontrolling interests	37	26	65	51
Comprehensive income attributable to common stockholders	$ 280	$ 87	$ 400	$ 166

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 858		$ 682	$ 728		$ 835
Accounts receivable—net	313		235
Inventories	290		309
Prepaid income taxes	1		28
Other current assets	26		20
Total current assets	1,488		1,274
Property, plant and equipment—net	8,336		8,623
Investment in affiliate	101		93
Goodwill	2,353		2,353
Operating lease right-of-use assets	281		0
Other assets	304		318
Total assets	12,863		12,661
Current liabilities:
Accounts payable and accrued expenses	416		545
Income taxes payable	13		5
Customer advances	21		149
Current operating lease liabilities	89		0
Current maturities of long-term debt	498		0
Other current liabilities	5		6
Total current liabilities	1,042		705
Long-term debt, net of current maturities	4,203		4,698
Deferred income taxes	1,207		1,117
Operating lease liabilities	197		0
Other liabilities	396		410
Stockholders’ equity:
Preferred stock—$0.01 par value, 50,000,000 shares authorized	0		0
Common stock—$0.01 par value, 500,000,000 shares authorized, 2019—218,961,651 shares issued and 2018—233,800,903 shares issued	2		2
Paid-in capital	1,299		1,368
Retained earnings	2,111		2,463
Treasury stock—at cost, 2019—42,608 shares and 2018—10,982,408 shares	(2)		(504)
Accumulated other comprehensive loss	(344)		(371)
Total stockholders’ equity	3,066		2,958
Noncontrolling interest	2,752		2,773	2,766		3,105
Total equity	5,818	$ 5,670	5,731	$ 6,322	$ 6,665	$ 6,684
Total liabilities and equity	$ 12,863		$ 12,661

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	218,961,651	233,800,903
Treasury stock, shares	42,608	10,982,408

XML

CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Total	$0.01 Par Value Common Stock	Treasury Stock	Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Stockholders’ Equity	Noncontrolling Interests	Unrealized Gain (Loss) on Securities
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09	$ (1,000,000)	$ 0	$ 0	$ 0	$ (1,000,000)	$ 0	$ (1,000,000)	$ 0
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-01	0	0	0	0	1,000,000	(1,000,000)	0	0	$ (1,000,000)
Balance at Dec. 31, 2017	6,684,000,000	2,000,000	0	1,397,000,000	2,443,000,000	(263,000,000)	3,579,000,000	3,105,000,000
Increase (decrease) in equity
Net earnings	262,000,000	0	0	0	211,000,000	0	211,000,000	51,000,000
Less: Net earnings attributable to noncontrolling interests	51,000,000
Net earnings attributable to common stockholders	211,000,000
Other comprehensive (loss) income	(45,000,000)	0	0	0	0	(45,000,000)	(45,000,000)	0
Acquisition of treasury stock under employee stock plans	(1,000,000)	0	0	(1,000,000)	0	0	(1,000,000)	0
Issuance of $0.01 par value common stock under employee stock plans	4,000,000	0	0	4,000,000	0	0	4,000,000	0
Stock-based compensation expense	11,000,000	0	0	11,000,000	0	0	11,000,000	0
Cash dividends	(140,000,000)	0	0	0		0	(140,000,000)	0
Payments of Ordinary Dividends, Common Stock	140,000,000				140,000,000
Acquisition of noncontrolling interests in TNCLP	(393,000,000)	0	0	62,000,000	0	0	62,000,000	331,000,000
Distributions declared to noncontrolling interests	(59,000,000)	0	0	0	0	0	0	(59,000,000)
Balance at Jun. 30, 2018	6,322,000,000	2,000,000	0	1,349,000,000	2,514,000,000	(309,000,000)	3,556,000,000	2,766,000,000
Balance at Mar. 31, 2018	6,665,000,000	2,000,000	(1,000,000)	1,405,000,000	2,436,000,000	(248,000,000)	3,594,000,000	3,071,000,000
Increase (decrease) in equity
Net earnings	174,000,000	0	0	0	148,000,000	0	148,000,000	26,000,000
Less: Net earnings attributable to noncontrolling interests	26,000,000
Net earnings attributable to common stockholders	148,000,000
Other comprehensive (loss) income	(61,000,000)	0	0	0	0	(61,000,000)	(61,000,000)	0
Acquisition of treasury stock under employee stock plans	0	0	1,000,000	(1,000,000)	0	0	0	0
Issuance of $0.01 par value common stock under employee stock plans	2,000,000	0	0	2,000,000	0	0	2,000,000	0
Stock-based compensation expense	5,000,000	0	0	5,000,000	0	0	5,000,000	0
Cash dividends	(70,000,000)	0	0	0	(70,000,000)	0	(70,000,000)	0
Acquisition of noncontrolling interests in TNCLP	(393,000,000)	0	0	62,000,000	0	0	62,000,000	331,000,000
Balance at Jun. 30, 2018	6,322,000,000	2,000,000	0	1,349,000,000	2,514,000,000	(309,000,000)	3,556,000,000	2,766,000,000
Balance at Dec. 31, 2018	5,731,000,000	2,000,000	(504,000,000)	1,368,000,000	2,463,000,000	(371,000,000)	2,958,000,000	2,773,000,000
Increase (decrease) in equity
Net earnings	438,000,000	0	0	0	373,000,000	0	373,000,000
Less: Net earnings attributable to noncontrolling interests	65,000,000							65,000,000
Net earnings attributable to common stockholders	373,000,000
Other comprehensive (loss) income	27,000,000	0	0	0	0	27,000,000	27,000,000	0
Treasury Stock, Value, Acquired, Cost Method	(178,000,000)	0	178,000,000	0	0	0	178,000,000	0
Treasury Stock, Retired, Cost Method, Amount	0	0	682,000,000	(90,000,000)	(592,000,000)	0	0	0
Acquisition of treasury stock under employee stock plans	4,000,000	0	4,000,000	0	0	0	4,000,000	0
Issuance of $0.01 par value common stock under employee stock plans	6,000,000	0	2,000,000	4,000,000	0	0	6,000,000	0
Stock-based compensation expense	17,000,000	0	0	17,000,000	0	0	17,000,000	0
Cash dividends	(133,000,000)	0	0	0		0	(133,000,000)	0
Payments of Ordinary Dividends, Common Stock	133,000,000				133,000,000
Distributions declared to noncontrolling interests	(86,000,000)	0	0	0	0	0	0	(86,000,000)
Balance at Jun. 30, 2019	5,818,000,000	2,000,000	(2,000,000)	1,299,000,000	2,111,000,000	(344,000,000)	3,066,000,000	2,752,000,000
Balance at Mar. 31, 2019	5,670,000,000	2,000,000	(64,000,000)	1,311,000,000	2,047,000,000	(341,000,000)	2,955,000,000	2,715,000,000
Increase (decrease) in equity
Net earnings	320,000,000	0	0	0		0	283,000,000
Less: Net earnings attributable to noncontrolling interests	37,000,000							37,000,000
Net earnings attributable to common stockholders	283,000,000				283,000,000
Other comprehensive (loss) income	(3,000,000)	0	0	0	0	(3,000,000)	(3,000,000)	0
Treasury Stock, Value, Acquired, Cost Method	(118,000,000)	0	(118,000,000)	0	0	0	(118,000,000)	0
Treasury Stock, Retired, Cost Method, Amount	0	0	178,000,000	(25,000,000)	(153,000,000)	0	0	0
Issuance of $0.01 par value common stock under employee stock plans	4,000,000	0	2,000,000	2,000,000	0	0	4,000,000	0
Stock-based compensation expense	11,000,000	0	0	11,000,000	0	0	11,000,000	0
Cash dividends	(66,000,000)	0	0	0	(66,000,000)	0	(66,000,000)	0
Balance at Jun. 30, 2019	$ 5,818,000,000	$ 2,000,000	$ (2,000,000)	$ 1,299,000,000	$ 2,111,000,000	$ (344,000,000)	$ 3,066,000,000	$ 2,752,000,000

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Cash Dividends (dollars per share)	$ 0.30	$ 0.30	$ 0.60	$ 0.60

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating Activities:
Net earnings	$ 438.0	$ 262.0
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	440.0	434.0
Deferred income taxes	85.0	2.0
Stock-based compensation expense	17.0	11.0
Unrealized net loss (gain) on natural gas derivatives	1.0	(8.0)
Unrealized loss on embedded derivative	2.0	1.0
Gain on disposal of property, plant and equipment	(45.0)	0.0
Undistributed earnings of affiliate—net of taxes	(10.0)	(3.0)
Changes in:
Accounts receivable—net	(78.0)	(34.0)
Inventories	21.0	21.0
Accrued and prepaid income taxes	35.0	52.0
Accounts payable and accrued expenses	(94.0)	(46.0)
Customer advances	(128.0)	(68.0)
Other—net	9.0	(26.0)
Net cash provided by operating activities	693.0	598.0
Investing Activities:
Additions to property, plant and equipment	(154.0)	(145.0)
Proceeds from sale of property, plant and equipment	63.0	16.0
Distributions received from unconsolidated affiliates	0.0	10.0
Other—net	0.0	1.0
Net cash used in investing activities	(91.0)	(118.0)
Financing Activities:
Financing fees	0.0	1.0
Dividends paid on common stock	(133.0)	(140.0)
Acquisition of noncontrolling interests in TNCLP	0.0	(388.0)
Distributions to noncontrolling interests	(86.0)	(59.0)
Purchases of treasury stock	(209.0)	0.0
Issuances of common stock under employee stock plans	6.0	4.0
Shares withheld for taxes	(4.0)	(1.0)
Net cash used in financing activities	(426.0)	(583.0)
Effect of exchange rate changes on cash and cash equivalents	0.0	(4.0)
Increase (decrease) in cash and cash equivalents	176.0	(107.0)
Cash and cash equivalents at beginning of period	682.0	835.0
Cash and cash equivalents at end of period	$ 858.0	$ 728.0

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Background and Basis of Presentation

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Background and Basis of Presentation

 Background and Basis of Presentation

We are a leading global fertilizer and chemical company. Our 3,000 employees operate world-class manufacturing complexes in Canada, the United Kingdom and the United States. Our principal customers are cooperatives, independent fertilizer distributors, traders, wholesalers, farmers and industrial users. Our principal nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Our other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to our industrial customers, and compound fertilizer products (NPKs), which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium. We serve our customers in North America through our production, storage, transportation and distribution network. We also reach a global customer base with exports from our Donaldsonville, Louisiana, plant, the world’s largest and most flexible nitrogen complex. Additionally, we move product to international destinations from our Verdigris, Oklahoma, facility, our Yazoo City, Mississippi, facility, our Billingham and Ince facilities in the United Kingdom, and from a joint venture ammonia facility in the Republic of Trinidad and Tobago in which we own a 50 percent interest.

All references to “CF Holdings,” “the Company,” “we,” “us” and “our” refer to CF Industries Holdings, Inc. and its subsidiaries, except where the context makes clear that the reference is only to CF Industries Holdings, Inc. itself and not its subsidiaries. All references to “CF Industries” refer to CF Industries, Inc., a 100% owned subsidiary of CF Industries Holdings, Inc.

The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2018, in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting. In the opinion of management, these statements reflect all adjustments, consisting only of normal and recurring adjustments, that are necessary for the fair representation of the information for the periods presented. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Operating results for any period presented apply to that period only and are not necessarily indicative of results for any future period.

The accompanying unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and related disclosures included in our 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019. The preparation of the unaudited interim consolidated financial statements requires us to make use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the unaudited consolidated financial statements and the reported revenues and expenses for the periods presented. Significant estimates and assumptions are used for, but are not limited to, net realizable value of inventories, environmental remediation liabilities, environmental and litigation contingencies, the cost of customer incentives, useful lives of property and identifiable intangible assets, the assumptions used in the evaluation of potential impairments of property, investments, identifiable intangible assets and goodwill, income tax and valuation reserves, allowances for doubtful accounts receivable, the measurement of the fair values of investments for which markets are not active, assumptions used in the determination of the funded status and annual expense of defined benefit pension and other postretirement benefit plans and the assumptions used in the valuation of stock-based compensation awards granted to employees.

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New Accounting Standards

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

New Accounting Standards

2.   New Accounting Standards

Recently Adopted Pronouncements

On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in ASC Topic 840, Leases. This ASU requires lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, are required to provide greater insight into the extent of income and expense recognized and expected to be recognized from existing contracts. We elected the optional transition method provided under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option to adopt ASU No. 2016-02 as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The cumulative effect adjustment we recognized in the opening balance of retained earnings as of January 1, 2019 was not material. In addition, we elected the package of practical expedients permitted under the transition guidance within ASU No. 2016-02, which allows us to carry forward the historical lease determination, lease classification, and assessment of initial direct costs. See Note 13—Leases for additional information.

On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships in order to better portray the economic results of an entity’s risk management activities in its financial statements. The adoption of this ASU had no effect on our consolidated financial statements.

Recently Issued Pronouncements

In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU does not affect the accounting for the service element of a hosting arrangement that is a service contract. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2019 and can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We plan to adopt this ASU prospectively. We do not expect that our adoption of this ASU on January 1, 2020 will have a material impact on our consolidated financial statements. However, this guidance could have an effect on future financial results if significant new software involving a cloud computing agreement is implemented. In this case, a certain portion of the implementation costs could be deferred and expensed over the term of the cloud computing arrangement.

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Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

3.   Revenue Recognition

We track our revenue by product and by geography. See Note 17—Segment Disclosures for our revenue by reportable segment, which are ammonia, granular urea, UAN, AN and Other. The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and six months ended June 30, 2019 and 2018:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Three months ended June 30, 2019
North America	$	443	$	413	$	346	$	54	$	68	$	1,324
Europe and other	30		20		23		72		33		178
Total revenue	$	473	$	433	$	369	$	126	$	101	$	1,502
Three months ended June 30, 2018
North America	$	349	$	345	$	290	$	49	$	64	$	1,097
Europe and other	25		15		49		75		39		203
Total revenue	$	374	$	360	$	339	$	124	$	103	$	1,300

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Six months ended June 30, 2019
North America	$	603	$	748	$	588	$	100	$	127	$	2,166
Europe and other	57		28		37		153		62		337
Total revenue	$	660	$	776	$	625	$	253	$	189	$	2,503
Six months ended June 30, 2018
North America	$	517	$	609	$	536	$	94	$	123	$	1,879
Europe and other	69		15		86		130		78		378
Total revenue	$	586	$	624	$	622	$	224	$	201	$	2,257

As of June 30, 2019 and December 31, 2018, we had $21 million and $149 million, respectively, in customer advances on our consolidated balance sheets. During the six months ended June 30, 2019 and 2018, substantially all of our customer advances that were recorded at the beginning of each respective period were recognized as revenue.

We offer cash incentives to certain customers based on the volume of their purchases over a certain period. These incentives do not provide an option to the customer for additional product. The balances of customer incentives accrued at June 30, 2019 and December 31, 2018 were not material.

We have certain customer contracts with performance obligations where if the customer does not take the required amount of product specified in the contract, then the customer is required to make a payment to us, which may vary based upon the terms and conditions of the applicable contract. As of June 30, 2019, excluding contracts with original durations of less than one year, and based on the minimum product tonnage to be sold and current market price estimates, our remaining performance obligations under these contracts are approximately $1.2 billion. We expect to recognize approximately 13% of these performance obligations as revenue in the remainder of 2019, approximately 45% as revenue during 2020 and 2021, approximately 28% as revenue during 2022 and 2023, and the remainder thereafter. If these customers do not fulfill their contractual obligations under such contracts, the legally enforceable minimum amount that they would pay to us under these contracts, in the aggregate, is approximately $264 million as of June 30, 2019. Other than the performance obligations described above, any performance obligations with our customers that were unfulfilled or partially filled at December 31, 2018 will be satisfied in 2019.

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Net Earnings Per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Net Earnings Per Share

Net Earnings Per Share

Net earnings per share were computed as follows:

	Three months ended   June 30,				Six months ended   June 30,
	2019		2018		2019		2018
	(in millions, except per share amounts)
Net earnings attributable to common stockholders	$	283	$	148	$	373	$	211
Basic earnings per common share:
Weighted-average common shares outstanding	221.1		234.0		222.2		233.9
Net earnings attributable to common stockholders	$	1.28	$	0.63	$	1.68	$	0.90
Diluted earnings per common share:
Weighted-average common shares outstanding	221.1		234.0		222.2		233.9
Dilutive common shares—stock options	1.2		0.9		1.2		0.9
Diluted weighted-average shares outstanding	222.3		234.9		223.4		234.8
Net earnings attributable to common stockholders	$	1.28	$	0.63	$	1.67	$	0.90

In the computation of diluted earnings per common share, potentially dilutive stock options are excluded if the effect of their inclusion is anti-dilutive. Shares for anti-dilutive stock options not included in the computation of diluted earnings per common share were 1.5 million in each of the three and six months ended June 30, 2019 and 2.0 million in each of the three and six months ended June 30, 2018.

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Inventories

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following:

	June 30, 2019		December 31, 2018
	(in millions)
Finished goods	$	250	$	272
Raw materials, spare parts and supplies	40		37
Total inventories	$	290	$	309

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Property, Plant and Equipment-Net

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment-Net

Property, Plant and Equipment—Net

Property, plant and equipment—net consists of the following:

	June 30, 2019		December 31, 2018
	(in millions)
Land	$	70	$	69
Machinery and equipment	12,178		12,127
Buildings and improvements	882		886
Construction in progress	275		225
Property, plant and equipment(1)	13,405		13,307
Less: Accumulated depreciation and amortization	5,069		4,684
Property, plant and equipment—net	$	8,336	$	8,623

_______________________________________________________________________________

⁽¹⁾  As of June 30, 2019 and December 31, 2018, we had property, plant and equipment that was accrued but unpaid of approximately $43 million and $48 million, respectively. As of June 30, 2018 and December 31, 2017, we had property, plant and equipment that was accrued but unpaid of $49 million and $46 million, respectively.

During the first quarter of 2019, we entered into an agreement to sell our Pine Bend dry bulk storage and logistics facility in Minnesota. In April 2019, we completed the sale, received proceeds of $55 million and recognized a pre-tax gain of $45 million. The gain is reflected in other operating—net in our consolidated statement of operations for the three and six months ended June 30, 2019.

Depreciation and amortization related to property, plant and equipment was $247 million and $430 million for the three and six months ended June 30, 2019, respectively, and $236 million and $421 million for the three and six months ended June 30, 2018, respectively.

Plant turnarounds—Scheduled inspections, replacements and overhauls of plant machinery and equipment at our continuous process manufacturing facilities during a full plant shutdown are referred to as plant turnarounds. The expenditures related to turnarounds are capitalized in property, plant and equipment when incurred. The following is a summary of capitalized plant turnaround costs:

	Six months ended   June 30,
	2019			2018
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	252		$	208
Additions	22			41
Depreciation	(57		)	(56		)
Effect of exchange rate changes	2			(2		)
Ending balance	$	219		$	191

Scheduled replacements and overhauls of plant machinery and equipment include the dismantling, repair or replacement and installation of various components including piping, valves, motors, turbines, pumps, compressors, heat exchangers and the replacement of catalysts when a full plant shutdown occurs. Scheduled inspections are also conducted during full plant shutdowns, including required safety inspections which entail the disassembly of various components such as steam boilers, pressure vessels and other equipment requiring safety certifications. Internal employee costs and overhead amounts are not considered turnaround costs and are not capitalized.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table shows the carrying amount of goodwill by reportable segment as of June 30, 2019 and December 31, 2018:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Balance as of December 31, 2018	$	586	$	828	$	576	$	292	$	71	$	2,353
Effect of exchange rate changes(1)	—		—		—		—		—		—
Balance as of June 30, 2019	$	586	$	828	$	576	$	292	$	71	$	2,353

_______________________________________________________________________________

⁽¹⁾  The effect of exchange rate changes on the carrying amount of goodwill was immaterial for the six months ended June 30, 2019.

All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
	(in millions)
Customer relationships	$	127	$	(40	)	$	87	$	127	$	(37	)	$	90
TerraCair brand	—		—			—		10		(10		)	—
Trade names	30		(6		)	24		30		(5		)	25
Total intangible assets	$	157	$	(46	)	$	111	$	167	$	(52	)	$	115

Our intangible assets are being amortized over a weighted-average life of approximately 20 years. Amortization expense of our identifiable intangible assets was $2 million and $4 million for the three and six months ended June 30, 2019, respectively, and $3 million and $5 million for the three and six months ended June 30, 2018, respectively. The gross carrying amount and accumulated amortization of our intangible assets are also impacted by the effect of exchange rate changes. Total estimated amortization expense for the remainder of 2019 and each of the five succeeding fiscal years is as follows:

	Estimated Amortization Expense
	(in millions)
Remainder of 2019	$	4
2020	8
2021	8
2022	8
2023	8
2024	8

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Equity Method Investment

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investment

Equity Method Investment

We have a 50% ownership interest in Point Lisas Nitrogen Limited (PLNL), which operates an ammonia production facility in the Republic of Trinidad and Tobago. We include our share of the net earnings from this equity method investment as an element of earnings from operations because PLNL provides additional production to our operations and is integrated with our other supply chain and sales activities in the ammonia segment.

As of June 30, 2019, the total carrying value of our equity method investment in PLNL was $101 million, $47 million more than our share of PLNL’s book value. The excess is attributable to the purchase accounting impact of our acquisition of the investment in PLNL and reflects the revaluation of property, plant and equipment. The increased basis for property, plant and equipment is being amortized over a remaining period of approximately 14 years. Our equity in earnings of PLNL is different from our ownership interest in income reported by PLNL due to amortization of this basis difference.

We have transactions in the normal course of business with PLNL reflecting our obligation to purchase 50% of the ammonia produced by PLNL at current market prices. Our ammonia purchases from PLNL totaled $12 million and $34 million

for the three and six months ended June 30, 2019, respectively, and $9 million and $38 million for the three and six months ended June 30, 2018, respectively.

The Trinidadian tax authority (the Board of Inland Revenue) has issued PLNL a tax assessment with respect to tax years 2011 and 2012 in the aggregate amount of approximately $12 million, in addition to interest and penalties with respect to tax years 2011 and 2012 in the aggregate amount of approximately $22 million, for alleged underpayment of withholding taxes on distributions made by PLNL to its owners. Since we own a 50% interest in PLNL, our effective share of any assessment that is determined to be a liability of PLNL would be 50%, which would be reflected as a reduction in our equity in earnings of PLNL. The Board of Inland Revenue has not provided PLNL with the legal or factual basis for the assessment. As a result, PLNL cannot assess the likelihood of the outcome of this matter and we cannot assess the potential foreign tax credit we may be eligible for, if the withholding tax amount was determined to be a liability of PLNL.

PLNL operates an ammonia plant that relies on natural gas supplied, under a Gas Sales Contract (the NGC Contract), by The National Gas Company of Trinidad and Tobago Limited (NGC). PLNL experienced past curtailments in the supply of natural gas from NGC, which reduced historical ammonia production at PLNL. The NGC Contract had an initial expiration date of September 2018 and was extended on the same terms until September 2023. Any NGC commitment to supply gas beyond 2023 will be based on new agreements. In May 2018, the NGC and PLNL reached a settlement of an arbitration proceeding regarding PLNL’s claims for damages due to the natural gas supply curtailments. The net after-tax impact of the settlement reached between NGC and PLNL that is recognized in our consolidated statements of operations for the three and six months ended June 30, 2018 was an increase in our equity in earnings of operating affiliates of approximately $19 million.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Our cash and cash equivalents and other investments consist of the following:

	June 30, 2019
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(in millions)
Cash	$	52	$	—	$	—	$	52
Cash equivalents:
U.S. and Canadian government obligations	794		—		—		794
Other debt securities	12		—		—		12
Total cash and cash equivalents	$	858	$	—	$	—	$	858
Nonqualified employee benefit trusts	17		2		—		19

	December 31, 2018
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(in millions)
Cash	$	34	$	—	$	—	$	34
Cash equivalents:
U.S. and Canadian government obligations	623		—		—		623
Other debt securities	25		—		—		25
Total cash and cash equivalents	$	682	$	—	$	—	$	682
Nonqualified employee benefit trusts	17		2		—		19

Under our short-term investment policy, we may invest our cash balances, either directly or through mutual funds, in several types of investment-grade securities, including notes and bonds issued by governmental entities or corporations. Securities issued by governmental entities include those issued directly by the U.S. and Canadian federal governments; those issued by state, local or other governmental entities; and those guaranteed by entities affiliated with governmental entities.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present assets and liabilities included in our consolidated balance sheets as of June 30, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:

	June 30, 2019
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in millions)
Cash equivalents	$	806		$	806	$	—		$	—
Nonqualified employee benefit trusts	19			19		—			—
Embedded derivative liability	(23		)	—		(23		)	—

	December 31, 2018
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in millions)
Cash equivalents	$	648		$	648	$	—		$	—
Nonqualified employee benefit trusts	19			19		—			—
Embedded derivative liability	(21		)	—		(21		)	—

Cash Equivalents

As of June 30, 2019 and December 31, 2018, our cash equivalents consisted primarily of U.S. and Canadian government obligations and money market mutual funds that invest in U.S. government obligations and other investment-grade securities.

Nonqualified Employee Benefit Trusts

We maintain trusts associated with certain nonqualified supplemental pension plans. The fair values of the trust assets are based on daily quoted prices in an active market, which represents the net asset values of the shares held in the trusts, and are included on our consolidated balance sheets in other assets. Debt securities are accounted for as available-for-sale securities. Changes in the fair value of equity securities in the trust assets are recognized through earnings.

Embedded Derivative Liability

Under the terms of our strategic venture with CHS Inc. (CHS), if our credit rating as determined by two of three specified credit rating agencies is below certain levels, we are required to make a non-refundable yearly payment of $5 million to CHS. Since our credit ratings were below certain levels in 2016, 2017 and 2018, we made a payment of $5 million to CHS in the fourth quarter of each year. These payments will continue on a yearly basis until the earlier of the date that our credit rating is upgraded to or above certain levels by two of the three specified credit rating agencies or February 1, 2026. This obligation is recognized on our consolidated balance sheets as an embedded derivative. As of June 30, 2019 and December 31, 2018, the embedded derivative liability of $23 million and $21 million, respectively, is included in other current liabilities and other liabilities on our consolidated balance sheets. Included in other operating—net in our consolidated statement of operations for the six months ended June 30, 2019 and 2018 is a net loss of $2 million and $1 million, respectively.

The inputs into the fair value measurement include the probability of future upgrades and downgrades of our credit rating based on historical credit rating movements of other public companies and the discount rates to be applied to potential annual payments based on applicable credit spreads of other public companies at different credit rating levels. Based on these inputs, our fair value measurement is classified as Level 2.

See Note 14—Noncontrolling Interests for additional information regarding our strategic venture with CHS.

Financial Instruments

The carrying amount and estimated fair value of our financial instruments are as follows:

	June 30, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Long-term debt	$	4,701	$	4,669	$	4,698	$	4,265

The fair value of our long-term debt was based on quoted prices for identical or similar liabilities in markets that are not active or valuation models in which all significant inputs and value drivers are observable and, as a result, they are classified as Level 2 inputs.

The carrying amounts of cash and cash equivalents, as well as instruments included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair values because of their short-term maturities.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We also have assets and liabilities that may be measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment, when there is allocation of purchase price in an acquisition or when a new liability is being established that requires fair value measurement. These include long-lived assets, goodwill and other intangible assets and investments in unconsolidated subsidiaries, such as equity method investments, which may be written down to fair value as a result of impairment. The fair value measurements related to each of these rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets. Since certain of the Company’s assumptions would involve inputs that are not observable, these fair values would reside within Level 3 of the fair value hierarchy.

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Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended June 30, 2019, we recorded an income tax provision of $102 million on pre-tax income of $422 million, or an effective tax rate of 24.2%, compared to an income tax provision of $44 million on pre-tax income of $218 million, or an effective tax rate of 20.2%, for the three months ended June 30, 2018.

For the six months ended June 30, 2019, our income tax provision includes an incentive tax credit from the State of Louisiana of $30 million, net of federal income tax, related to certain capital projects at our Donaldsonville, Louisiana complex.

Our effective tax rate is also impacted by earnings attributable to noncontrolling interest in CF Industries Nitrogen, LLC (CFN), as our consolidated income tax provision does not include a tax provision on the earnings attributable to the noncontrolling interest. Our effective tax rate for the three months ended June 30, 2019 of 24.2%, which is based on pre-tax income of $422 million, would be 26.5% exclusive of the earnings attributable to the noncontrolling interests of $37 million. Our effective tax rate for the three months ended June 30, 2018 of 20.2%, which is based on pre-tax income of $218 million, would be 23.0% exclusive of the earnings attributable to the noncontrolling interests of $26 million. See Note 14—Noncontrolling Interests for additional information.

On April 2, 2018, we purchased all of the outstanding publicly traded common units of TNCLP. Our effective tax rate in the second quarter of 2018 is impacted by a $20 million reduction to our deferred tax liability due to the change in our effective state income tax rate as a result of the implementation of legal entity structure changes related to the acquisition. See Note 14—Noncontrolling Interests for additional information.

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Interest Expense

6 Months Ended

Jun. 30, 2019

Interest Expense [Abstract]

Interest Expense

Interest Expense

Details of interest expense are as follows:

	Three months ended   June 30,					Six months ended   June 30,
	2019			2018		2019			2018
	(in millions)
Interest on borrowings(1)	$	57		$	57	$	114		$	114
Fees on financing agreements(1)	3			4		6			7
Interest on tax liabilities	—			—		—			1
Interest capitalized	(1		)	—		(1		)	(1		)
Total interest expense	$	59		$	61	$	119		$	121

_______________________________________________________________________________

⁽¹⁾ 

See Note 12—Financing Agreements for additional information.

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Financing Agreements

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Financing Agreements

Financing Agreements

Revolving Credit Agreement

We have a senior secured revolving credit agreement (the Revolving Credit Agreement) providing for a revolving credit facility of up to $750 million with a maturity of September 18, 2020. The Revolving Credit Agreement includes a letter of credit sub-limit of $125 million. Borrowings under the Revolving Credit Agreement may be used for working capital and general corporate purposes. CF Industries, the borrower under the Revolving Credit Agreement, may also designate as borrowers one or more wholly owned subsidiaries that are organized in the United States or any state thereof or the District of Columbia.

Borrowings under the Revolving Credit Agreement may be denominated in dollars, Canadian dollars, euros and British pounds, and bear interest at a per annum rate equal to an applicable eurocurrency rate or base rate plus, in either case, a specified margin, and the borrowers are required to pay an undrawn commitment fee on the undrawn portion of the commitments under the Revolving Credit Agreement and customary letter of credit fees. The specified margin and the amount of the commitment fee depend on CF Holdings’ credit rating at the time.

The guarantors under the Revolving Credit Agreement are currently comprised of CF Holdings and CF Holdings’ wholly owned subsidiaries CF Industries Enterprises, LLC (CFE), CF Industries Sales, LLC (CFS), CF USA Holdings, LLC (CF USA) and CF Industries Distribution Facilities, LLC (CFIDF).

As of June 30, 2019, we had excess borrowing capacity under the Revolving Credit Agreement of $750 million and no outstanding letters of credit. There were no borrowings outstanding under the Revolving Credit Agreement as of June 30, 2019 or December 31, 2018, or during the six months ended June 30, 2019.

The Revolving Credit Agreement contains representations and warranties and affirmative and negative covenants, including financial covenants. As of June 30, 2019, we were in compliance with all covenants under the Revolving Credit Agreement.

Letters of Credit

In addition to the letter of credit capacity under the Revolving Credit Agreement, as described above, we have also entered into a bilateral agreement with capacity to issue letters of credit up to $145 million (reflecting an increase of $20 million in January 2019). As of June 30, 2019, approximately $131 million of letters of credit were outstanding under this agreement.

Senior Notes

Long-term debt, including current maturities of long-term debt, presented on our consolidated balance sheets as of June 30, 2019 and December 31, 2018 consisted of the following Public Senior Notes (unsecured) and Senior Secured Notes issued by CF Industries:

	Effective Interest Rate	June 30, 2019				December 31, 2018
		Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
		(in millions)
Public Senior Notes:
7.125% due May 2020	7.529%	$	500	$	498	$	500	$	497
3.450% due June 2023	3.562%	750		747		750		747
5.150% due March 2034	5.279%	750		740		750		740
4.950% due June 2043	5.031%	750		742		750		741
5.375% due March 2044	5.465%	750		741		750		741
Senior Secured Notes:
3.400% due December 2021	3.782%	500		495		500		495
4.500% due December 2026	4.759%	750		738		750		737
Total long-term debt		$	4,750	$	4,701	$	4,750	$	4,698
Less: Current maturities of long-term debt		500		498		—		—
Long-term debt, net of current maturities		$	4,250	$	4,203	$	4,750	$	4,698

_______________________________________________________________________________

⁽¹⁾  Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $11 million as of both June 30, 2019 and December 31, 2018, and total deferred debt issuance costs were $38 million and $41 million as of June 30, 2019 and December 31, 2018, respectively. 

Public Senior Notes

Under the indentures (including the applicable supplemental indentures) governing the senior notes due 2020, 2023, 2034, 2043 and 2044 identified in the table above (the Public Senior Notes), each series of Public Senior Notes is guaranteed by CF Holdings and CF Holdings’ wholly owned subsidiaries CFE, CFS, CF USA and CFIDF. CFE, CFS, CF USA and CFIDF became subsidiary guarantors of the Public Senior Notes as a result of their becoming guarantors under the Revolving Credit Agreement. Interest on the Public Senior Notes is payable semiannually, and the Public Senior Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices.

Senior Secured Notes

On November 21, 2016, CF Industries issued $500 million aggregate principal amount of 3.400% senior secured notes due 2021 (the 2021 Notes) and $750 million aggregate principal amount of 4.500% senior secured notes due 2026 (the 2026 Notes, and together with the 2021 Notes, the Senior Secured Notes). CF Holdings and the subsidiary guarantors of the Public Senior Notes are also guarantors of the Senior Secured Notes. Interest on the Senior Secured Notes is payable semiannually on December 1 and June 1, and the Senior Secured Notes are redeemable at our option, in whole at any time or in part from time to time, at specified make-whole redemption prices.

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Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

13.   Leases

Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate the present value represents our secured incremental borrowing rate and is calculated based on the treasury yield curve commensurate with the term of each lease, and a spread representative of our secured borrowing costs. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

For operating leases, rental payments, including rent holidays, leasehold incentives, and scheduled rent increases are expensed on a straight-line basis. For finance leases, if any, ROU assets are amortized over the lease term on a straight-line basis and interest expense is recognized using the effective interest method and based on the lease liability at period end. Leasehold improvements are amortized over the shorter of the depreciable lives of the corresponding fixed assets or the lease term including any applicable renewals. We have made an accounting policy election to not include leases with an initial term of 12 months or less on the balance sheet.

We have operating leases for certain property and equipment under various noncancelable agreements, the most significant of which are rail car leases and barge tow charters for the distribution of our products. The rail car leases currently have minimum terms ranging from one to eleven years and the barge tow charter commitments range from one to seven years. Our rail car leases and barge tow charters commonly contain provisions for automatic annual renewal that can extend the lease term unless canceled by either party. We also have operating leases for terminal and warehouse storage for our distribution system, some of which contain minimum throughput requirements. The storage agreements contain minimum terms generally ranging from one to five years and commonly contain provisions for automatic annual renewal thereafter unless canceled by either party. The renewal provisions for our rail car leases, barge tow charters and terminal and warehouse storage agreements are not reasonably certain to be exercised. For all rail car leases, barge tow charters, and terminal and warehouse storage agreements, we have made an accounting policy election to not separate lease and non-lease components, such as operating costs and maintenance, due to the unavailability of sufficient data. As a result, the non-lease components are included in the ROU assets and lease liabilities on our balance sheet.

The components of lease costs were as follows:

	Three months ended   June 30, 2019		Six months ended   June 30, 2019
	(in millions)
Operating lease cost	$	24	$	47
Short-term lease cost	7		14
Total lease cost	$	31	$	61

Supplemental cash flow information related to leases was as follows:

	Six months ended   June 30, 2019
	(in millions)
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities	$	42
ROU assets obtained in exchange for operating lease obligations	32

Supplemental balance sheet information related to leases was as follows:

	June 30, 2019
	(in millions)
Operating lease ROU assets	$	281
Current operating lease liabilities	$	89
Operating lease liabilities	197
Total operating lease liabilities	$	286

	June 30, 2019
Operating leases
Weighted average remaining lease term	5 years
Weighted average discount rate(1)	4.9	%

_______________________________________________________________________________

⁽¹⁾  Upon adoption of the new lease accounting standard, discount rates used for existing leases were established at January 1, 2019. See Note 2—New Accounting Standards.

The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of June 30, 2019.

	Operating lease payments
	(in millions)
Remainder of 2019	$	46
2020	85
2021	64
2022	42
2023	28
Thereafter	57
Total lease payments	322
Less: imputed interest	(36		)
Total operating lease liabilities	286
Less: Current operating lease liabilities	(89		)
Long-term operating lease liabilities	$	197

As of June 30, 2019, we have entered into additional leases that had not yet commenced. These leases have been excluded from total operating lease liabilities and will commence in fiscal years 2019 and 2020 with future minimum payments of $18 million and lease terms ranging from five to ten years.

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, the future minimum lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows:

	Operating lease payments
	(in millions)
2019	$	93
2020	80
2021	59
2022	41
2023	28
Thereafter	62
Total lease payments	$	363

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Noncontrolling Interests

6 Months Ended

Jun. 30, 2019

Noncontrolling Interest [Abstract]

Noncontrolling Interests

Noncontrolling Interests

A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to noncontrolling interests in our consolidated balance sheets is provided below.

	2019			2018
	CFN			CFN			TNCLP			Total
	(in millions)
Noncontrolling interests:
Balance as of January 1	$	2,773		$	2,772		$	333		$	3,105
Earnings attributable to noncontrolling interests	65			43			8			51
Declaration of distributions payable	(86		)	(49		)	(10		)	(59		)
Purchase of the TNCLP Public Units	—			—			(331		)	(331		)
Balance as of June 30	$	2,752		$	2,766		$	—		$	2,766
Distributions payable to noncontrolling interests:
Balance as of January 1	$	—		$	—		$	—		$	—
Declaration of distributions payable	86			49			10			59
Distributions to noncontrolling interests	(86		)	(49		)	(10		)	(59		)
Balance as of June 30	$	—		$	—		$	—		$	—

CF Industries Nitrogen, LLC (CFN)

We have a strategic venture with CHS under which they own an equity interest in CFN, a subsidiary of CF Holdings, which represents approximately 11% of the membership interests of CFN. We own the remaining membership interests. Under the terms of CFN’s limited liability company agreement, each member’s interest will reflect, over time, the impact of the profitability of CFN and any member contributions made to, and distributions received from, CFN. For financial reporting purposes, the assets, liabilities and earnings of the strategic venture are consolidated into our financial statements. CHS’ interest in the strategic venture is recorded in noncontrolling interests in our consolidated financial statements. CHS also receives deliveries pursuant to a supply agreement under which CHS has the right to purchase annually from CFN up to approximately 1.1 million tons of granular urea and 580,000 tons of UAN at market prices. As a result of its equity interest in CFN, CHS is entitled to semi-annual cash distributions from CFN. We are also entitled to semi-annual cash distributions from CFN. The amounts of distributions from CFN to us and CHS are based generally on the profitability of CFN and determined based on the volume of granular urea and UAN sold by CFN to us and CHS pursuant to supply agreements, less a formula driven amount based primarily on the cost of natural gas used to produce the granular urea and UAN, and adjusted for the allocation of items such as operational efficiencies and overhead amounts. Additionally, under the terms of the strategic venture, we recognized an embedded derivative related to our credit rating. See Note 9—Fair Value Measurements for additional information.

On July 31, 2019, the CFN Board of Managers approved semi-annual distribution payments for the distribution period ended June 30, 2019 in accordance with CFN’s limited liability company agreement. On July 31, 2019, CFN distributed $100 million to CHS for the distribution period ended June 30, 2019.

Terra Nitrogen Company, L.P. (TNCLP)

On February 7, 2018, we announced that, in accordance with the terms of TNCLP’s First Amended and Restated Agreement of Limited Partnership (as amended by Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership, the TNCLP Agreement of Limited Partnership), Terra Nitrogen GP Inc. (TNGP), the sole general partner of TNCLP and an indirect wholly owned subsidiary of CF Holdings, elected to exercise its right to purchase all of the 4,612,562 publicly traded common units of TNCLP (the TNCLP Public Units). On April 2, 2018, TNGP completed its purchase of the TNCLP Public Units (the Purchase) for an aggregate cash purchase price of $388 million, at which time we recognized a reduction in paid-in capital of $62 million; a deferred tax liability of $5 million; and the removal of the TNCLP noncontrolling interests, as shown in the table above. Upon completion of the Purchase, CF Holdings owned, through its subsidiaries, 100 percent of the general and limited partnership interests of TNCLP.

Prior to April 2, 2018, TNCLP was a master limited partnership that owned a nitrogen fertilizer manufacturing facility in Verdigris, Oklahoma. We owned approximately 75.3% of TNCLP through general and limited partnership interests and outside investors owned the remaining approximately 24.7% of the limited partnership interests. For financial reporting purposes, the assets, liabilities and earnings of the partnership were consolidated into our financial statements. The outside investors’ limited partnership interests in TNCLP were recorded in noncontrolling interests in our consolidated financial statements. The noncontrolling interest represented the noncontrolling unitholders’ interest (prior to the Purchase) in the earnings and equity of TNCLP. Affiliates of CF Industries were required to purchase all of TNCLP’s fertilizer products at market prices as defined in the Amendment to the General and Administrative Services and Product Offtake Agreement, dated September 28, 2010.

Prior to April 2, 2018, TNCLP made cash distributions to the general and limited partners based on formulas defined within the TNCLP Agreement of Limited Partnership. Cash available for distribution (Available Cash) was defined in the TNCLP Agreement of Limited Partnership generally as all cash receipts less all cash disbursements, less certain reserves (including reserves for future operating and capital needs) established as the general partner determined in its reasonable discretion to be necessary or appropriate. Changes in working capital affected Available Cash, as increases in the amount of cash invested in working capital items (such as increases in receivables or inventory and decreases in accounts payable) reduced Available Cash, while declines in the amount of cash invested in working capital items increased Available Cash. Cash distributions to the limited partners and general partner varied depending on the extent to which the cumulative distributions exceeded certain target threshold levels set forth in the TNCLP Agreement of Limited Partnership.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Stockholders' Equity

Treasury Stock

On August 1, 2018, our Board of Directors (the Board) authorized the repurchase of up to $500 million of CF Holdings common stock through June 30, 2020 (the 2018 Share Repurchase Program). In 2018, we completed the 2018 Share Repurchase Program with the repurchase of 10.9 million shares for $500 million, of which $33 million was accrued and unpaid at December 31, 2018. In February 2019, we retired all 10.9 million shares that were repurchased under the 2018 Share Repurchase Program.

On February 13, 2019, the Board authorized the repurchase of up to $1 billion of CF Holdings common stock through December 31, 2021 (the 2019 Share Repurchase Program). Repurchases under the 2019 Share Repurchase Program may be made from time to time in the open market, through privately negotiated transactions, block transactions or otherwise. The manner, timing and amount of repurchases will be determined by our management based on the evaluation of market conditions, stock price, and other factors. In the six months ended June 30, 2019, we repurchased approximately 4.2 million shares for $178 million, of which $2 million was accrued and unpaid at June 30, 2019. In June 2019, we retired approximately 4.2 million shares that were repurchased under the 2019 Share Repurchase Program. At June 30, 2019, we held 42,608 shares of treasury stock.

Accumulated Other Comprehensive Income (Loss)

Changes to accumulated other comprehensive income (loss) are as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) on Securities			Unrealized Gain on Derivatives		Defined Benefit Plans			Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance as of December 31, 2017	$	(145	)	$	1		$	4	$	(123	)	$	(263	)
Adoption of ASU 2016-01	—			(1		)	—		—			(1		)
Unrealized loss	—			(1		)	—		—			(1		)
Gain arising during the period	—			—			—		5			5
Reclassification to earnings(1)	—			—			—		1			1
Effect of exchange rate changes and deferred taxes	(50		)	—			—		—			(50		)
Balance as of June 30, 2018	$	(195	)	$	(1	)	$	4	$	(117	)	$	(309	)
Balance as of December 31, 2018	$	(250	)	$	—		$	5	$	(126	)	$	(371	)
Gain arising during the period	—			—			—		5			5
Reclassification to earnings(1)	—			—			—		(1		)	(1		)
Effect of exchange rate changes and deferred taxes	24			—			—		(1		)	23
Balance as of June 30, 2019	$	(226	)	$	—		$	5	$	(123	)	$	(344	)

____________________________________________________________________________

⁽¹⁾ 

Reclassifications out of accumulated other comprehensive income (loss) to earnings during the three and six months ended June 30, 2019 and 2018 were not material.

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Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Litigation

West Fertilizer Co.

On April 17, 2013, there was a fire and explosion at the West Fertilizer Co. fertilizer storage and distribution facility in West, Texas. According to published reports, 15 people were killed and approximately 200 people were injured in the incident, and the fire and explosion damaged or destroyed a number of homes and buildings around the facility. Various subsidiaries of CF Industries Holdings, Inc. (the CF Entities) were named as defendants along with other companies in lawsuits filed in 2013, 2014 and 2015 in the District Court of McLennan County, Texas by the City of West, individual residents of the County and other parties seeking recovery for damages allegedly sustained as a result of the explosion. The cases were consolidated for discovery and pretrial proceedings in the District Court of McLennan County under the caption “In re: West Explosion Cases.” The two-year statute of limitations expired on April 17, 2015. As of that date, over 400 plaintiffs had filed claims, including at least 9 entities, 325 individuals, and 80 insurance companies. Plaintiffs allege various theories of negligence, strict liability, and breach of warranty under Texas law. Although we do not own or operate the facility or directly sell our products to West Fertilizer Co., products that the CF Entities manufactured and sold to others were delivered to the facility and may have been stored at the West facility at the time of the incident.

The Court granted in part and denied in part the CF Entities’ Motions for Summary Judgment in August 2015. Over two hundred cases have been resolved pursuant to confidential settlements that have been or we expect will be fully funded by insurance. The remaining cases are in various stages of discovery and pre-trial proceedings. The next group of cases was reset for trial beginning on September 16, 2019. We believe we have strong legal and factual defenses and intend to continue defending the CF Entities vigorously in the pending lawsuits. The Company cannot provide a range of reasonably possible loss due to the lack of damages discovery for many of the remaining claims and the uncertain nature of this litigation, including uncertainties around the potential allocation of responsibility by a jury to other defendants or responsible third parties. The recognition of a potential loss in the future in the West Fertilizer Co. litigation could negatively affect our results in the period of recognition. However, based upon currently available information, including available insurance coverage, we do not believe that this litigation will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Other Litigation

From time to time, we are subject to ordinary, routine legal proceedings related to the usual conduct of our business, including proceedings regarding public utility and transportation rates, environmental matters, taxes and permits relating to the operations of our various plants and facilities. Based on the information available as of the date of this filing, we believe that the ultimate outcome of these routine matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Environmental

From time to time, we receive notices from governmental agencies or third parties alleging that we are a potentially responsible party at certain cleanup sites under CERCLA or other environmental cleanup laws. In 2011, we received a notice from the Idaho Department of Environmental Quality (IDEQ) that alleged that we were a potentially responsible party for the cleanup of a former phosphate mine site we owned in the late 1950s and early 1960s located in Georgetown Canyon, Idaho. The current property owner and a former mining contractor received similar notices for the site. In 2014, we and the current property owner entered into a Consent Order with IDEQ and the U.S. Forest Service to conduct a remedial investigation and feasibility study of the site. In 2015, we and several other parties received a notice that the U.S. Department of the Interior and other trustees intend to undertake a natural resource damage assessment for 17 former phosphate mines in southeast Idaho, one of which is the former Georgetown Canyon mine. We are not able to estimate at this time our potential liability, if any, with respect to the cleanup of the site or a possible claim for natural resource damages. However, based on currently available information, we do not expect the remedial or financial obligations to which we may be subject involving this or other cleanup sites will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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Segment Disclosures

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

Our reportable segments consist of ammonia, granular urea, UAN, AN and Other. These segments are differentiated by products. Our management uses gross margin to evaluate segment performance and allocate resources. Total other operating costs and expenses (consisting of selling, general and administrative expenses and other operating—net) and non-operating expenses (interest and income taxes) are centrally managed and are not included in the measurement of segment profitability reviewed by management.

Our assets, with the exception of goodwill, are not monitored by or reported to our chief operating decision maker by segment; therefore, we do not present total assets by segment. Goodwill by segment is presented in Note 7—Goodwill and Other Intangible Assets.

Segment data for sales, cost of sales and gross margin for the three and six months ended June 30, 2019 and 2018 are presented in the tables below.

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Three months ended June 30, 2019
Net sales	$	473	$	433	$	369	$	126	$	101	$	1,502
Cost of sales	300		251		277		94		81		1,003
Gross margin	$	173	$	182	$	92	$	32	$	20	499
Total other operating costs and expenses											25
Equity in earnings of operating affiliate											1
Operating earnings											$	475
Three months ended June 30, 2018
Net sales	$	374	$	360	$	339	$	124	$	103	$	1,300
Cost of sales	272		255		258		117		86		988
Gross margin	$	102	$	105	$	81	$	7	$	17	312
Total other operating costs and expenses											56
Equity in earnings of operating affiliate											18
Operating earnings											$	274

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Six months ended June 30, 2019
Net sales	$	660	$	776	$	625	$	253	$	189	$	2,503
Cost of sales	466		479		472		208		159		1,784
Gross margin	$	194	$	297	$	153	$	45	$	30	719
Total other operating costs and expenses											87
Equity in earnings of operating affiliate											8
Operating earnings											$	640
Six months ended June 30, 2018
Net sales	$	586	$	624	$	622	$	224	$	201	$	2,257
Cost of sales	460		444		488		191		172		1,755
Gross margin	$	126	$	180	$	134	$	33	$	29	502
Total other operating costs and expenses											92
Equity in earnings of operating affiliate											25
Operating earnings											$	435

_______________________________________________________________________________

⁽¹⁾ 

The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results.

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Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

The following condensed consolidating financial information is presented in accordance with SEC Regulation S-X Rule 3-10, Financial statements of guarantors and issuers of guaranteed securities registered or being registered, and relates to (i) the senior notes due 2020, 2023, 2034, 2043 and 2044 (described in Note 12—Financing Agreements and referred to in this report as the Public Senior Notes) issued by CF Industries, Inc. (CF Industries), a 100% owned subsidiary of CF Industries Holdings, Inc. (Parent), and guarantees of the Public Senior Notes by Parent and by CFE, CFS, CF USA and CFIDF (the Subsidiary Guarantors), which are 100% owned subsidiaries of Parent, and (ii) debt securities of CF Industries (Other Debt Securities), and guarantees thereof by Parent and the Subsidiary Guarantors, that may be offered and sold from time to time under registration statements that may be filed by Parent, CF Industries and the Subsidiary Guarantors with the SEC.

In the event that a subsidiary of Parent, other than CF Industries, becomes a borrower or a guarantor under the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), such subsidiary would be required to become a guarantor of the Public Senior Notes, provided that such requirement will no longer apply with respect to the Public Senior Notes due 2023, 2034, 2043 and 2044 following the repayment of the Public Senior Notes due 2020 or the subsidiaries of Parent, other than CF Industries, otherwise becoming no longer subject to such a requirement to guarantee the Public Senior Notes due 2020. The Subsidiary Guarantors became guarantors of the Public Senior Notes as a result of this requirement.

All of the guarantees of the Public Senior Notes are, and we have assumed for purposes of this presentation of condensed consolidating financial information that the guarantees of any Other Debt Securities would be, full and unconditional (as such term is defined in SEC Regulation S-X Rule 3-10(h)) and joint and several. The guarantee of a Subsidiary Guarantor will be automatically released with respect to a series of the Public Senior Notes (1) upon the release, discharge or termination of such Subsidiary Guarantor’s guarantee of the Revolving Credit Agreement (or any renewal, replacement or refinancing thereof), (2) upon legal defeasance with respect to the Public Senior Notes of such series or satisfaction and discharge of the indenture with respect to such series of Public Senior Notes or (3) in the case of the Public Senior Notes due 2023, 2034, 2043 and 2044, upon the discharge, termination or release of, or the release of such Subsidiary Guarantor from its obligations under, such Subsidiary Guarantor’s guarantee of the Public Senior Notes due 2020, including, without limitation, any such discharge, termination or release as a result of retirement, discharge or legal or covenant defeasance of, or satisfaction and discharge of the supplemental indenture governing, the Public Senior Notes due 2020.

For purposes of the presentation of condensed consolidating financial information, the subsidiaries of Parent other than CF Industries and the Subsidiary Guarantors are referred to as the Non-Guarantors.

Presented below are condensed consolidating statements of operations and statements of comprehensive income for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors for the three and six months ended June 30, 2019 and 2018, condensed consolidating statements of cash flows for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors for the six months ended June 30, 2019 and 2018, and condensed consolidating balance sheets for Parent, CF Industries, the Subsidiary Guarantors and the Non-Guarantors as of June 30, 2019 and December 31, 2018. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, comprehensive income or cash flows of Parent, CF Industries, the Subsidiary Guarantors or the Non-Guarantors on a stand-alone basis.

In these condensed consolidating financial statements, investments in subsidiaries are presented under the equity method, in which our investments are recorded at cost and adjusted for our ownership share of a subsidiary’s cumulative results of operations, distributions and other equity changes, and the eliminating entries reflect primarily intercompany transactions such as sales, accounts receivable and accounts payable and the elimination of equity investments and earnings of subsidiaries. As of June 30, 2019, two of our consolidated entities have made elections to be taxed as partnerships for U.S. federal income tax purposes and are included in the Non-Guarantors column. Due to the partnership tax treatment, these subsidiaries do not record taxes on their financial statements. The tax provision pertaining to the income of these partnerships, plus applicable deferred tax balances are reflected on the financial statements of the parent company owner that is included in the Subsidiary Guarantors column in the following financial information. Liabilities related to benefit plan obligations are reflected on the legal entity that funds the obligation, while the benefit plan expense is included on the legal entity to which the employee provides services.

Condensed Consolidating Statement of Operations

	Three months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	96		$	1,262		$	989		$	(845	)	$	1,502
Cost of sales	—			69			1,052			725			(843		)	1,003
Gross margin	—			27			210			264			(2		)	499
Selling, general and administrative expenses	1			(2		)	46			19			(2		)	62
Other operating—net	—			3			(40		)	—			—			(37		)
Total other operating costs and expenses	1			1			6			19			(2		)	25
Equity in earnings of operating affiliates	—			—			—			1			—			1
Operating (loss) earnings	(1		)	26			204			246			—			475
Interest expense	1			62			—			—			(4		)	59
Interest expense—mandatorily redeemable preferred shares	—			—			—			1			(1		)	—
Interest income	—			—			(5		)	(4		)	5			(4		)
Net earnings of wholly owned subsidiaries	(285		)	(314		)	(199		)	—			798			—
Other non-operating—net	—			—			(1		)	(1		)	—			(2		)
Earnings before income taxes	283			278			409			250			(798		)	422
Income tax (benefit) provision	(1		)	(7		)	104			6			—			102
Net earnings	284			285			305			244			(798		)	320
Less: Net earnings attributable to noncontrolling interests	—			—			—			37			—			37
Net earnings attributable to common stockholders	$	284		$	285		$	305		$	207		$	(798	)	$	283

Condensed Consolidating Statement of Comprehensive Income

	Three months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors		Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	284		$	285		$	305	$	244		$	(798	)	$	320
Other comprehensive (loss) income	(3		)	(3		)	2		(7		)	8			(3		)
Comprehensive income	281			282			307		237			(790		)	317
Less: Comprehensive income attributable to noncontrolling interests	—			—			—		37			—			37
Comprehensive income attributable to common stockholders	$	281		$	282		$	307	$	200		$	(790	)	$	280

Condensed Consolidating Statement of Operations

	Six months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	186		$	2,001		$	1,939		$	(1,623	)	$	2,503
Cost of sales	—			157			1,768			1,478			(1,619		)	1,784
Gross margin	—			29			233			461			(4		)	719
Selling, general and administrative expenses	2			(1		)	85			38			(4		)	120
Other operating—net	—			4			(39		)	2			—			(33		)
Total other operating costs and expenses	2			3			46			40			(4		)	87
Equity in earnings of operating affiliates	—			1			—			7			—			8
Operating (loss) earnings	(2		)	27			187			428			—			640
Interest expense	1			123			1			1			(7		)	119
Interest expense—mandatorily redeemable preferred shares	—			—			—			2			(2		)	—
Interest income	(1		)	—			(8		)	(8		)	9			(8		)
Net earnings of wholly owned subsidiaries	(375		)	(451		)	(376		)	—			1,202			—
Other non-operating—net	—			—			(1		)	(2		)	—			(3		)
Earnings before income taxes	373			355			571			435			(1,202		)	532
Income tax (benefit) provision	(1		)	(20		)	134			(19		)	—			94
Net earnings	374			375			437			454			(1,202		)	438
Less: Net earnings attributable to noncontrolling interests	—			—			—			65			—			65
Net earnings attributable to common stockholders	$	374		$	375		$	437		$	389		$	(1,202	)	$	373

Condensed Consolidating Statement of Comprehensive Income

	Six months ended June 30, 2019
	Parent		CF Industries		Subsidiary Guarantors		Non-Guarantors		Eliminations			Consolidated
	(in millions)
Net earnings	$	374	$	375	$	437	$	454	$	(1,202	)	$	438
Other comprehensive income	28		28		22		24		(75		)	27
Comprehensive income	402		403		459		478		(1,277		)	465
Less: Comprehensive income attributable to noncontrolling interests	—		—		—		65		—			65
Comprehensive income attributable to common stockholders	$	402	$	403	$	459	$	413	$	(1,277	)	$	400

Condensed Consolidating Statement of Operations

	Three months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	85		$	1,063		$	918		$	(766	)	$	1,300
Cost of sales	—			69			922			761			(764		)	988
Gross margin	—			16			141			157			(2		)	312
Selling, general and administrative expenses	—			2			33			20			(2		)	53
Other operating—net	—			5			1			(3		)	—			3
Total other operating costs and expenses	—			7			34			17			(2		)	56
Equity in (losses) earnings of operating affiliate	—			(1		)	—			19			—			18
Operating earnings	—			8			107			159			—			274
Interest expense	—			61			6			2			(8		)	61
Interest income	—			(1		)	(2		)	(7		)	8			(2		)
Net earnings of wholly owned subsidiaries	(148		)	(188		)	(139		)	—			475			—
Other non-operating—net	—			—			—			(3		)	—			(3		)
Earnings before income taxes	148			136			242			167			(475		)	218
Income tax (benefit) provision	—			(12		)	56			—			—			44
Net earnings	148			148			186			167			(475		)	174
Less: Net earnings attributable to noncontrolling interests	—			—			—			26			—			26
Net earnings attributable to common stockholders	$	148		$	148		$	186		$	141		$	(475	)	$	148

Condensed Consolidating Statement of Comprehensive Income

	Three months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	148		$	148		$	186		$	167		$	(475	)	$	174
Other comprehensive loss	(61		)	(61		)	(35		)	(62		)	158			(61		)
Comprehensive income	87			87			151			105			(317		)	113
Less: Comprehensive income attributable to noncontrolling interests	—			—			—			26			—			26
Comprehensive income attributable to common stockholders	$	87		$	87		$	151		$	79		$	(317	)	$	87

Condensed Consolidating Statement of Operations

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	190		$	1,775		$	1,803		$	(1,511	)	$	2,257
Cost of sales	—			159			1,638			1,461			(1,503		)	1,755
Gross margin	—			31			137			342			(8		)	502
Selling, general and administrative expenses	1			3			72			42			(8		)	110
Other operating—net	—			(8		)	(2		)	(8		)	—			(18		)
Total other operating costs and expenses	1			(5		)	70			34			(8		)	92
Equity in earnings of operating affiliates	—			2			—			23			—			25
Operating (loss) earnings	(1		)	38			67			331			—			435
Interest expense	—			123			10			3			(15		)	121
Interest income	(1		)	(3		)	(5		)	(11		)	15			(5		)
Net earnings of wholly owned subsidiaries	(211		)	(275		)	(274		)	—			760			—
Other non-operating—net	—			—			—			(4		)	—			(4		)
Earnings before income taxes	211			193			336			343			(760		)	323
Income tax (benefit) provision	—			(18		)	73			6			—			61
Net earnings	211			211			263			337			(760		)	262
Less: Net earnings attributable to noncontrolling interests	—			—			—			51			—			51
Net earnings attributable to common stockholders	$	211		$	211		$	263		$	286		$	(760	)	$	211

Condensed Consolidating Statement of Comprehensive Income

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	211		$	211		$	263		$	337		$	(760	)	$	262
Other comprehensive loss	(46		)	(46		)	(34		)	(47		)	128			(45		)
Comprehensive income	165			165			229			290			(632		)	217
Less: Comprehensive income attributable to noncontrolling interests	—			—			—			51			—			51
Comprehensive income attributable to common stockholders	$	165		$	165		$	229		$	239		$	(632	)	$	166

Condensed Consolidating Balance Sheet

	June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	68		$	10		$	45		$	735		$	—		$	858
Accounts and notes receivable—net	145			512			1,376			804			(2,524		)	313
Inventories	—			—			136			154			—			290
Prepaid income taxes	—			—			—			1			—			1
Other current assets	—			—			18			8			—			26
Total current assets	213			522			1,575			1,702			(2,524		)	1,488
Property, plant and equipment—net	—			—			109			8,227			—			8,336
Investments in affiliates	3,893			8,377			6,719			101			(18,989		)	101
Goodwill	—			—			2,064			289			—			2,353
Operating lease right-of-use assets	—			—			276			5			—			281
Other assets	—			3			146			327			(172		)	304
Total assets	$	4,106		$	8,902		$	10,889		$	10,651		$	(21,685	)	$	12,863
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	1,040		$	293		$	1,309		$	298		$	(2,524	)	$	416
Income taxes payable	—			—			13			—			—			13
Customer advances	—			—			21			—			—			21
Current operating lease liabilities	—			—			87			2			—			89
Current maturities of long-term debt	—			498			—			—			—			498
Other current liabilities	—			—			5			—			—			5
Total current liabilities	1,040			791			1,435			300			(2,524		)	1,042
Long-term debt, net of current maturities	—			4,203			44			126			(170		)	4,203
Dividends payable—mandatorily redeemable preferred shares	—			—			—			2			(2		)	—
Deferred income taxes	—			—			1,047			160			—			1,207
Operating lease liabilities	—			—			194			3			—			197
Other liabilities	—			15			230			151			—			396
Equity:
Stockholders’ equity:
Preferred stock	—			—			—			—			—			—
Common stock	2			—			—			5,147			(5,147		)	2
Paid-in capital	1,299			1,799			8,760			1,263			(11,822		)	1,299
Retained earnings	2,111			2,438			(558		)	1,039			(2,919		)	2,111
Treasury stock	(2		)	—			—			—			—			(2		)
Accumulated other comprehensive loss	(344		)	(344		)	(255		)	(300		)	899			(344		)
Total stockholders’ equity	3,066			3,893			7,947			7,149			(18,989		)	3,066
Noncontrolling interests	—			—			(8		)	2,760			—			2,752
Total equity	3,066			3,893			7,939			9,909			(18,989		)	5,818
Total liabilities and equity	$	4,106		$	8,902		$	10,889		$	10,651		$	(21,685	)	$	12,863

Condensed Consolidating Balance Sheet

	December 31, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	36		$	27		$	65		$	554		$	—		$	682
Accounts and notes receivable—net	135			500			1,203			911			(2,514		)	235
Inventories	—			4			142			163			—			309
Prepaid income taxes	—			—			24			4			—			28
Other current assets	—			—			15			5			—			20
Total current assets	171			531			1,449			1,637			(2,514		)	1,274
Property, plant and equipment—net	—			—			118			8,505			—			8,623
Investments in affiliates	3,656			8,208			6,857			94			(18,722		)	93
Goodwill	—			—			2,064			289			—			2,353
Other assets	—			4			126			320			(132		)	318
Total assets	$	3,827		$	8,743		$	10,614		$	10,845		$	(21,368	)	$	12,661
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	870		$	374		$	1,429		$	386		$	(2,514	)	$	545
Income taxes payable	—			—			5			—			—			5
Customer advances	—			—			149			—			—			149
Other current liabilities	—			—			6			—			—			6
Total current liabilities	870			374			1,589			386			(2,514		)	705
Long-term debt	—			4,698			43			89			(132		)	4,698
Deferred income taxes	—			—			960			157			—			1,117
Other liabilities	—			15			232			163			—			410
Equity:
Stockholders’ equity:
Preferred stock	—			—			—			—			—			—
Common stock	2			—			—			5,363			(5,363		)	2
Paid-in capital	1,368			1,799			9,070			1,265			(12,134		)	1,368
Retained earnings	2,463			2,229			(995		)	965			(2,199		)	2,463
Treasury stock	(504		)	—			—			—			—			(504		)
Accumulated other comprehensive loss	(372		)	(372		)	(277		)	(324		)	974			(371		)
Total stockholders’ equity	2,957			3,656			7,798			7,269			(18,722		)	2,958
Noncontrolling interests	—			—			(8		)	2,781			—			2,773
Total equity	2,957			3,656			7,790			10,050			(18,722		)	5,731
Total liabilities and equity	$	3,827		$	8,743		$	10,614		$	10,845		$	(21,368	)	$	12,661

Condensed Consolidating Statement of Cash Flows

	Six months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	374		$	375		$	437		$	454		$	(1,202	)	$	438
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	—			4			12			424			—			440
Deferred income taxes	—			—			86			(1		)	—			85
Stock-based compensation expense	17			—			—			—			—			17
Unrealized net loss on natural gas derivatives	—			—			1			—			—			1
Unrealized loss on embedded derivative	—			—			2			—			—			2
Gain on disposal of property, plant and equipment	—			—			(45		)	—			—			(45		)
Undistributed earnings of affiliates—net	(375		)	(451		)	(376		)	(10		)	1,202			(10		)
Changes in:
Intercompany accounts receivable/accounts payable—net	(9		)	(11		)	(22		)	42			—			—
Accounts receivable—net	—			(1		)	(70		)	(7		)	—			(78		)
Inventories	—			4			5			12			—			21
Accrued and prepaid income taxes	(1		)	(20		)	63			(7		)	—			35
Accounts and notes payable and accrued expenses	—			(4		)	(21		)	(69		)	—			(94		)
Customer advances	—			—			(128		)	—			—			(128		)
Other—net	—			—			2			7			—			9
Net cash provided by (used in) operating activities	6			(104		)	(54		)	845			—			693
Investing Activities:
Additions to property, plant and equipment	—			—			(8		)	(146		)	—			(154		)
Proceeds from sale of property, plant and equipment	—			—			55			8			—			63
Distributions received from unconsolidated affiliates	—			225			209			(434		)	—			—
Net cash provided by (used in) investing activities	—			225			256			(572		)	—			(91		)
Financing Activities:
Long-term debt—net	—			—			(39		)	39			—			—
Short-term debt—net	199			29			(183		)	(45		)	—			—
Dividends paid on common stock	(133		)	(167		)	—			—			167			(133		)
Dividends to/from affiliates	167			—			—			—			(167		)	—
Distribution to noncontrolling interest	—			—			—			(86		)	—			(86		)
Purchases of treasury stock	(209		)	—			—			—			—			(209		)
Issuances of common stock under employee stock plans	6			—			—			—			—			6
Shares withheld for taxes	(4		)	—			—			—			—			(4		)
Net cash provided by (used in) financing activities	26			(138		)	(222		)	(92		)	—			(426		)
Increase (decrease) in cash and cash equivalents	32			(17		)	(20		)	181			—			176
Cash and cash equivalents at beginning of period	36			27			65			554			—			682
Cash and cash equivalents at end of period	$	68		$	10		$	45		$	735		$	—		$	858

Condensed Consolidating Statement of Cash Flows

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	211		$	211		$	263		$	337		$	(760	)	$	262
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization	—			4			11			419			—			434
Deferred income taxes	—			—			12			(10		)	—			2
Stock-based compensation expense	11			—			—			—			—			11
Unrealized net loss (gain) on natural gas derivatives	—			—			(5		)	(3		)	—			(8		)
Unrealized loss on embedded derivative	—			—			1			—			—			1
Undistributed earnings of affiliates—net	(211		)	(275		)	(274		)	(3		)	760			(3		)
Changes in:
Intercompany accounts receivable/accounts payable—net	(15		)	(84		)	124			(25		)	—			—
Accounts receivable—net	—			(16		)	(20		)	2			—			(34		)
Inventories	—			4			4			13			—			21
Accrued and prepaid income taxes	—			(18		)	69			1			—			52
Accounts and notes payable and accrued expenses	—			(9		)	(1		)	(36		)	—			(46		)
Customer advances	—			—			(68		)	—			—			(68		)
Other—net	—			(1		)	4			(29		)	—			(26		)
Net cash (used in) provided by operating activities	(4		)	(184		)	120			666			—			598
Investing Activities:
Additions to property, plant and equipment	—			—			(4		)	(141		)	—			(145		)
Proceeds from sale of property, plant and equipment	—			—			—			16			—			16
Distributions received from unconsolidated affiliates	—			—			184			(174		)	—			10
Investments in consolidated subs - capital contributions	—			(31		)	(415		)	446			—			—
Other—net	—			—			—			1			—			1
Net cash (used in) provided by investing activities	—			(31		)	(235		)	148			—			(118		)
Financing Activities:
Long-term debt—net	—			—			178			(178		)	—			—
Short-term debt—net	141			202			(371		)	28			—			—
Financing fees	—			1			—			—			—			1
Dividends paid on common stock	(140		)	—			—			(49		)	49			(140		)
Dividends to/from affiliates	—			—			49			—			(49		)	—
Acquisition of noncontrolling interest in TNCLP	—			—			—			(388		)	—			(388		)
Distributions to noncontrolling interests	—			—			—			(59		)	—			(59		)
Issuances of common stock under employee stock plans	4			—			—			—			—			4
Shares withheld for taxes	(1		)	—			—			—			—			(1		)
Net cash provided by (used in) financing activities	4			203			(144		)	(646		)	—			(583		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(4		)	—			(4		)
(Decrease) increase in cash and cash equivalents	—			(12		)	(259		)	164			—			(107		)
Cash and cash equivalents at beginning of period	—			15			388			432			—			835
Cash and cash equivalents at end of period	$	—		$	3		$	129		$	596		$	—		$	728

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New Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Recently Adopted Pronouncements

Recently Adopted Pronouncements

On January 1, 2019, we adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which supersedes the lease accounting requirements in ASC Topic 840, Leases. This ASU requires lessees to recognize the rights and obligations resulting from virtually all leases (other than leases that meet the definition of a short-term lease) on their balance sheets as right-of-use assets with corresponding lease liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, are required to provide greater insight into the extent of income and expense recognized and expected to be recognized from existing contracts. We elected the optional transition method provided under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option to adopt ASU No. 2016-02 as of the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The cumulative effect adjustment we recognized in the opening balance of retained earnings as of January 1, 2019 was not material. In addition, we elected the package of practical expedients permitted under the transition guidance within ASU No. 2016-02, which allows us to carry forward the historical lease determination, lease classification, and assessment of initial direct costs. See Note 13—Leases for additional information.

On January 1, 2019, we adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships in order to better portray the economic results of an entity’s risk management activities in its financial statements. The adoption of this ASU had no effect on our consolidated financial statements.

Recently Issued Pronouncements

In August 2018, the Financial Accounting Standards Board issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU does not affect the accounting for the service element of a hosting arrangement that is a service contract. The amendments in this ASU are effective for annual and interim periods beginning after December 15, 2019 and can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We plan to adopt this ASU prospectively. We do not expect that our adoption of this ASU on January 1, 2020 will have a material impact on our consolidated financial statements. However, this guidance could have an effect on future financial results if significant new software involving a cloud computing agreement is implemented. In this case, a certain portion of the implementation costs could be deferred and expensed over the term of the cloud computing arrangement.

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes our revenue by product and by geography (based on destination of our shipment) for the three and six months ended June 30, 2019 and 2018:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Three months ended June 30, 2019
North America	$	443	$	413	$	346	$	54	$	68	$	1,324
Europe and other	30		20		23		72		33		178
Total revenue	$	473	$	433	$	369	$	126	$	101	$	1,502
Three months ended June 30, 2018
North America	$	349	$	345	$	290	$	49	$	64	$	1,097
Europe and other	25		15		49		75		39		203
Total revenue	$	374	$	360	$	339	$	124	$	103	$	1,300

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Six months ended June 30, 2019
North America	$	603	$	748	$	588	$	100	$	127	$	2,166
Europe and other	57		28		37		153		62		337
Total revenue	$	660	$	776	$	625	$	253	$	189	$	2,503
Six months ended June 30, 2018
North America	$	517	$	609	$	536	$	94	$	123	$	1,879
Europe and other	69		15		86		130		78		378
Total revenue	$	586	$	624	$	622	$	224	$	201	$	2,257

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Net Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Summary of net earnings per share

Net earnings per share were computed as follows:

	Three months ended   June 30,				Six months ended   June 30,
	2019		2018		2019		2018
	(in millions, except per share amounts)
Net earnings attributable to common stockholders	$	283	$	148	$	373	$	211
Basic earnings per common share:
Weighted-average common shares outstanding	221.1		234.0		222.2		233.9
Net earnings attributable to common stockholders	$	1.28	$	0.63	$	1.68	$	0.90
Diluted earnings per common share:
Weighted-average common shares outstanding	221.1		234.0		222.2		233.9
Dilutive common shares—stock options	1.2		0.9		1.2		0.9
Diluted weighted-average shares outstanding	222.3		234.9		223.4		234.8
Net earnings attributable to common stockholders	$	1.28	$	0.63	$	1.67	$	0.90

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Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following:

	June 30, 2019		December 31, 2018
	(in millions)
Finished goods	$	250	$	272
Raw materials, spare parts and supplies	40		37
Total inventories	$	290	$	309

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Property, Plant and Equipment-Net (Tables)

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment, Net [Abstract]

Components of property, plant and equipment-net

Property, plant and equipment—net consists of the following:

	June 30, 2019		December 31, 2018
	(in millions)
Land	$	70	$	69
Machinery and equipment	12,178		12,127
Buildings and improvements	882		886
Construction in progress	275		225
Property, plant and equipment(1)	13,405		13,307
Less: Accumulated depreciation and amortization	5,069		4,684
Property, plant and equipment—net	$	8,336	$	8,623

_______________________________________________________________________________

⁽¹⁾ 

As of June 30, 2019 and December 31, 2018, we had property, plant and equipment that was accrued but unpaid of approximately $43 million and $48 million, respectively. As of June 30, 2018 and December 31, 2017, we had property, plant and equipment that was accrued but unpaid of $49 million and $46 million, respectively.

Summary of plant turnaround activity

The following is a summary of capitalized plant turnaround costs:

	Six months ended   June 30,
	2019			2018
	(in millions)
Net capitalized turnaround costs:
Beginning balance	$	252		$	208
Additions	22			41
Depreciation	(57		)	(56		)
Effect of exchange rate changes	2			(2		)
Ending balance	$	219		$	191

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of carrying amount of goodwill by business segment

The following table shows the carrying amount of goodwill by reportable segment as of June 30, 2019 and December 31, 2018:

	Ammonia		Granular Urea		UAN		AN		Other		Total
	(in millions)
Balance as of December 31, 2018	$	586	$	828	$	576	$	292	$	71	$	2,353
Effect of exchange rate changes(1)	—		—		—		—		—		—
Balance as of June 30, 2019	$	586	$	828	$	576	$	292	$	71	$	2,353

_______________________________________________________________________________

⁽¹⁾ 

The effect of exchange rate changes on the carrying amount of goodwill was immaterial for the six months ended June 30, 2019.

Schedule of the identifiable intangibles and their carrying values presented in other noncurrent assets on consolidated balance sheet

All of our identifiable intangible assets have definite lives and are presented in other assets on our consolidated balance sheets at gross carrying amount, net of accumulated amortization, as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
	(in millions)
Customer relationships	$	127	$	(40	)	$	87	$	127	$	(37	)	$	90
TerraCair brand	—		—			—		10		(10		)	—
Trade names	30		(6		)	24		30		(5		)	25
Total intangible assets	$	157	$	(46	)	$	111	$	167	$	(52	)	$	115

Schedule of estimated future amortization expense

Total estimated amortization expense for the remainder of 2019 and each of the five succeeding fiscal years is as follows:

	Estimated Amortization Expense
	(in millions)
Remainder of 2019	$	4
2020	8
2021	8
2022	8
2023	8
2024	8

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of cash and cash equivalents and other investments reconciliation from adjusted cost to fair value

Our cash and cash equivalents and other investments consist of the following:

	June 30, 2019
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(in millions)
Cash	$	52	$	—	$	—	$	52
Cash equivalents:
U.S. and Canadian government obligations	794		—		—		794
Other debt securities	12		—		—		12
Total cash and cash equivalents	$	858	$	—	$	—	$	858
Nonqualified employee benefit trusts	17		2		—		19

	December 31, 2018
	Cost Basis		Unrealized Gains		Unrealized Losses		Fair Value
	(in millions)
Cash	$	34	$	—	$	—	$	34
Cash equivalents:
U.S. and Canadian government obligations	623		—		—		623
Other debt securities	25		—		—		25
Total cash and cash equivalents	$	682	$	—	$	—	$	682
Nonqualified employee benefit trusts	17		2		—		19

Schedule of assets and liabilities measured at fair value on a recurring basis

The following tables present assets and liabilities included in our consolidated balance sheets as of June 30, 2019 and December 31, 2018 that are recognized at fair value on a recurring basis, and indicate the fair value hierarchy utilized to determine such fair value:

	June 30, 2019
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in millions)
Cash equivalents	$	806		$	806	$	—		$	—
Nonqualified employee benefit trusts	19			19		—			—
Embedded derivative liability	(23		)	—		(23		)	—

	December 31, 2018
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(in millions)
Cash equivalents	$	648		$	648	$	—		$	—
Nonqualified employee benefit trusts	19			19		—			—
Embedded derivative liability	(21		)	—		(21		)	—

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amount and estimated fair value of our financial instruments are as follows:

	June 30, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Long-term debt	$	4,701	$	4,669	$	4,698	$	4,265

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Interest Expense (Tables)

6 Months Ended

Jun. 30, 2019

Interest Expense [Abstract]

Schedule of interest expense

Details of interest expense are as follows:

	Three months ended   June 30,					Six months ended   June 30,
	2019			2018		2019			2018
	(in millions)
Interest on borrowings(1)	$	57		$	57	$	114		$	114
Fees on financing agreements(1)	3			4		6			7
Interest on tax liabilities	—			—		—			1
Interest capitalized	(1		)	—		(1		)	(1		)
Total interest expense	$	59		$	61	$	119		$	121

_______________________________________________________________________________

⁽¹⁾ 

See Note 12—Financing Agreements for additional information.

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Financing Agreements (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Components of long-term debt

Long-term debt, including current maturities of long-term debt, presented on our consolidated balance sheets as of June 30, 2019 and December 31, 2018 consisted of the following Public Senior Notes (unsecured) and Senior Secured Notes issued by CF Industries:

	Effective Interest Rate	June 30, 2019				December 31, 2018
		Principal		Carrying Amount (1)		Principal		Carrying Amount (1)
		(in millions)
Public Senior Notes:
7.125% due May 2020	7.529%	$	500	$	498	$	500	$	497
3.450% due June 2023	3.562%	750		747		750		747
5.150% due March 2034	5.279%	750		740		750		740
4.950% due June 2043	5.031%	750		742		750		741
5.375% due March 2044	5.465%	750		741		750		741
Senior Secured Notes:
3.400% due December 2021	3.782%	500		495		500		495
4.500% due December 2026	4.759%	750		738		750		737
Total long-term debt		$	4,750	$	4,701	$	4,750	$	4,698
Less: Current maturities of long-term debt		500		498		—		—
Long-term debt, net of current maturities		$	4,250	$	4,203	$	4,750	$	4,698

_______________________________________________________________________________

⁽¹⁾ 

Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discount was $11 million as of both June 30, 2019 and December 31, 2018, and total deferred debt issuance costs were $38 million and $41 million as of June 30, 2019 and December 31, 2018, respectively. 

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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Components of lease costs

The components of lease costs were as follows:

	Three months ended   June 30, 2019		Six months ended   June 30, 2019
	(in millions)
Operating lease cost	$	24	$	47
Short-term lease cost	7		14
Total lease cost	$	31	$	61

Supplemental cash flows related to leases

Supplemental cash flow information related to leases was as follows:

	Six months ended   June 30, 2019
	(in millions)
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities	$	42
ROU assets obtained in exchange for operating lease obligations	32

Supplemental balance sheet related to leases

Supplemental balance sheet information related to leases was as follows:

	June 30, 2019
	(in millions)
Operating lease ROU assets	$	281
Current operating lease liabilities	$	89
Operating lease liabilities	197
Total operating lease liabilities	$	286

	June 30, 2019
Operating leases
Weighted average remaining lease term	5 years
Weighted average discount rate(1)	4.9	%

_______________________________________________________________________________

⁽¹⁾ 

Upon adoption of the new lease accounting standard, discount rates used for existing leases were established at January 1, 2019. See Note 2—New Accounting Standards.

Reconciliation of undiscounted cash flows

The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of June 30, 2019.

	Operating lease payments
	(in millions)
Remainder of 2019	$	46
2020	85
2021	64
2022	42
2023	28
Thereafter	57
Total lease payments	322
Less: imputed interest	(36		)
Total operating lease liabilities	286
Less: Current operating lease liabilities	(89		)
Long-term operating lease liabilities	$	197

Schedule of Future Minimum Rental Payments for Operating Leases

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, the future minimum lease payments for operating leases having initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 were as follows:

	Operating lease payments
	(in millions)
2019	$	93
2020	80
2021	59
2022	41
2023	28
Thereafter	62
Total lease payments	$	363

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Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2019

Noncontrolling Interest [Abstract]

Noncontrolling Interests

A reconciliation of the beginning and ending balances of noncontrolling interests and distributions payable to noncontrolling interests in our consolidated balance sheets is provided below.

	2019			2018
	CFN			CFN			TNCLP			Total
	(in millions)
Noncontrolling interests:
Balance as of January 1	$	2,773		$	2,772		$	333		$	3,105
Earnings attributable to noncontrolling interests	65			43			8			51
Declaration of distributions payable	(86		)	(49		)	(10		)	(59		)
Purchase of the TNCLP Public Units	—			—			(331		)	(331		)
Balance as of June 30	$	2,752		$	2,766		$	—		$	2,766
Distributions payable to noncontrolling interests:
Balance as of January 1	$	—		$	—		$	—		$	—
Declaration of distributions payable	86			49			10			59
Distributions to noncontrolling interests	(86		)	(49		)	(10		)	(59		)
Balance as of June 30	$	—		$	—		$	—		$	—

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Schedule of changes to AOCI

Changes to accumulated other comprehensive income (loss) are as follows:

	Foreign Currency Translation Adjustment			Unrealized Gain (Loss) on Securities			Unrealized Gain on Derivatives		Defined Benefit Plans			Accumulated Other Comprehensive Income (Loss)
	(in millions)
Balance as of December 31, 2017	$	(145	)	$	1		$	4	$	(123	)	$	(263	)
Adoption of ASU 2016-01	—			(1		)	—		—			(1		)
Unrealized loss	—			(1		)	—		—			(1		)
Gain arising during the period	—			—			—		5			5
Reclassification to earnings(1)	—			—			—		1			1
Effect of exchange rate changes and deferred taxes	(50		)	—			—		—			(50		)
Balance as of June 30, 2018	$	(195	)	$	(1	)	$	4	$	(117	)	$	(309	)
Balance as of December 31, 2018	$	(250	)	$	—		$	5	$	(126	)	$	(371	)
Gain arising during the period	—			—			—		5			5
Reclassification to earnings(1)	—			—			—		(1		)	(1		)
Effect of exchange rate changes and deferred taxes	24			—			—		(1		)	23
Balance as of June 30, 2019	$	(226	)	$	—		$	5	$	(123	)	$	(344	)

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Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Summary of segment data for sales, cost of sales and gross margin

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Three months ended June 30, 2019
Net sales	$	473	$	433	$	369	$	126	$	101	$	1,502
Cost of sales	300		251		277		94		81		1,003
Gross margin	$	173	$	182	$	92	$	32	$	20	499
Total other operating costs and expenses											25
Equity in earnings of operating affiliate											1
Operating earnings											$	475
Three months ended June 30, 2018
Net sales	$	374	$	360	$	339	$	124	$	103	$	1,300
Cost of sales	272		255		258		117		86		988
Gross margin	$	102	$	105	$	81	$	7	$	17	312
Total other operating costs and expenses											56
Equity in earnings of operating affiliate											18
Operating earnings											$	274

	Ammonia		Granular Urea(1)		UAN(1)		AN(1)		Other(1)		Consolidated
	(in millions)
Six months ended June 30, 2019
Net sales	$	660	$	776	$	625	$	253	$	189	$	2,503
Cost of sales	466		479		472		208		159		1,784
Gross margin	$	194	$	297	$	153	$	45	$	30	719
Total other operating costs and expenses											87
Equity in earnings of operating affiliate											8
Operating earnings											$	640
Six months ended June 30, 2018
Net sales	$	586	$	624	$	622	$	224	$	201	$	2,257
Cost of sales	460		444		488		191		172		1,755
Gross margin	$	126	$	180	$	134	$	33	$	29	502
Total other operating costs and expenses											92
Equity in earnings of operating affiliate											25
Operating earnings											$	435

_______________________________________________________________________________

⁽¹⁾  The cost of the products that are upgraded into other products is transferred at cost into the upgraded product results.

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Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statement of Operations

	Six months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	186		$	2,001		$	1,939		$	(1,623	)	$	2,503
Cost of sales	—			157			1,768			1,478			(1,619		)	1,784
Gross margin	—			29			233			461			(4		)	719
Selling, general and administrative expenses	2			(1		)	85			38			(4		)	120
Other operating—net	—			4			(39		)	2			—			(33		)
Total other operating costs and expenses	2			3			46			40			(4		)	87
Equity in earnings of operating affiliates	—			1			—			7			—			8
Operating (loss) earnings	(2		)	27			187			428			—			640
Interest expense	1			123			1			1			(7		)	119
Interest expense—mandatorily redeemable preferred shares	—			—			—			2			(2		)	—
Interest income	(1		)	—			(8		)	(8		)	9			(8		)
Net earnings of wholly owned subsidiaries	(375		)	(451		)	(376		)	—			1,202			—
Other non-operating—net	—			—			(1		)	(2		)	—			(3		)
Earnings before income taxes	373			355			571			435			(1,202		)	532
Income tax (benefit) provision	(1		)	(20		)	134			(19		)	—			94
Net earnings	374			375			437			454			(1,202		)	438
Less: Net earnings attributable to noncontrolling interests	—			—			—			65			—			65
Net earnings attributable to common stockholders	$	374		$	375		$	437		$	389		$	(1,202	)	$	373

Condensed Consolidating Statement of Operations

	Three months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	96		$	1,262		$	989		$	(845	)	$	1,502
Cost of sales	—			69			1,052			725			(843		)	1,003
Gross margin	—			27			210			264			(2		)	499
Selling, general and administrative expenses	1			(2		)	46			19			(2		)	62
Other operating—net	—			3			(40		)	—			—			(37		)
Total other operating costs and expenses	1			1			6			19			(2		)	25
Equity in earnings of operating affiliates	—			—			—			1			—			1
Operating (loss) earnings	(1		)	26			204			246			—			475
Interest expense	1			62			—			—			(4		)	59
Interest expense—mandatorily redeemable preferred shares	—			—			—			1			(1		)	—
Interest income	—			—			(5		)	(4		)	5			(4		)
Net earnings of wholly owned subsidiaries	(285		)	(314		)	(199		)	—			798			—
Other non-operating—net	—			—			(1		)	(1		)	—			(2		)
Earnings before income taxes	283			278			409			250			(798		)	422
Income tax (benefit) provision	(1		)	(7		)	104			6			—			102
Net earnings	284			285			305			244			(798		)	320
Less: Net earnings attributable to noncontrolling interests	—			—			—			37			—			37
Net earnings attributable to common stockholders	$	284		$	285		$	305		$	207		$	(798	)	$	283

Condensed Consolidating Statement of Operations

	Three months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	85		$	1,063		$	918		$	(766	)	$	1,300
Cost of sales	—			69			922			761			(764		)	988
Gross margin	—			16			141			157			(2		)	312
Selling, general and administrative expenses	—			2			33			20			(2		)	53
Other operating—net	—			5			1			(3		)	—			3
Total other operating costs and expenses	—			7			34			17			(2		)	56
Equity in (losses) earnings of operating affiliate	—			(1		)	—			19			—			18
Operating earnings	—			8			107			159			—			274
Interest expense	—			61			6			2			(8		)	61
Interest income	—			(1		)	(2		)	(7		)	8			(2		)
Net earnings of wholly owned subsidiaries	(148		)	(188		)	(139		)	—			475			—
Other non-operating—net	—			—			—			(3		)	—			(3		)
Earnings before income taxes	148			136			242			167			(475		)	218
Income tax (benefit) provision	—			(12		)	56			—			—			44
Net earnings	148			148			186			167			(475		)	174
Less: Net earnings attributable to noncontrolling interests	—			—			—			26			—			26
Net earnings attributable to common stockholders	$	148		$	148		$	186		$	141		$	(475	)	$	148

Condensed Consolidating Statement of Operations

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net sales	$	—		$	190		$	1,775		$	1,803		$	(1,511	)	$	2,257
Cost of sales	—			159			1,638			1,461			(1,503		)	1,755
Gross margin	—			31			137			342			(8		)	502
Selling, general and administrative expenses	1			3			72			42			(8		)	110
Other operating—net	—			(8		)	(2		)	(8		)	—			(18		)
Total other operating costs and expenses	1			(5		)	70			34			(8		)	92
Equity in earnings of operating affiliates	—			2			—			23			—			25
Operating (loss) earnings	(1		)	38			67			331			—			435
Interest expense	—			123			10			3			(15		)	121
Interest income	(1		)	(3		)	(5		)	(11		)	15			(5		)
Net earnings of wholly owned subsidiaries	(211		)	(275		)	(274		)	—			760			—
Other non-operating—net	—			—			—			(4		)	—			(4		)
Earnings before income taxes	211			193			336			343			(760		)	323
Income tax (benefit) provision	—			(18		)	73			6			—			61
Net earnings	211			211			263			337			(760		)	262
Less: Net earnings attributable to noncontrolling interests	—			—			—			51			—			51
Net earnings attributable to common stockholders	$	211		$	211		$	263		$	286		$	(760	)	$	211

Schedule of Condensed Consolidating Statements of Comprehensive Income

	Three months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	148		$	148		$	186		$	167		$	(475	)	$	174
Other comprehensive loss	(61		)	(61		)	(35		)	(62		)	158			(61		)
Comprehensive income	87			87			151			105			(317		)	113
Less: Comprehensive income attributable to noncontrolling interests	—			—			—			26			—			26
Comprehensive income attributable to common stockholders	$	87		$	87		$	151		$	79		$	(317	)	$	87

	Three months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors		Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	284		$	285		$	305	$	244		$	(798	)	$	320
Other comprehensive (loss) income	(3		)	(3		)	2		(7		)	8			(3		)
Comprehensive income	281			282			307		237			(790		)	317
Less: Comprehensive income attributable to noncontrolling interests	—			—			—		37			—			37
Comprehensive income attributable to common stockholders	$	281		$	282		$	307	$	200		$	(790	)	$	280

Condensed Consolidating Statement of Comprehensive Income

	Six months ended June 30, 2019
	Parent		CF Industries		Subsidiary Guarantors		Non-Guarantors		Eliminations			Consolidated
	(in millions)
Net earnings	$	374	$	375	$	437	$	454	$	(1,202	)	$	438
Other comprehensive income	28		28		22		24		(75		)	27
Comprehensive income	402		403		459		478		(1,277		)	465
Less: Comprehensive income attributable to noncontrolling interests	—		—		—		65		—			65
Comprehensive income attributable to common stockholders	$	402	$	403	$	459	$	413	$	(1,277	)	$	400

Condensed Consolidating Statement of Comprehensive Income

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non-Guarantors			Eliminations			Consolidated
	(in millions)
Net earnings	$	211		$	211		$	263		$	337		$	(760	)	$	262
Other comprehensive loss	(46		)	(46		)	(34		)	(47		)	128			(45		)
Comprehensive income	165			165			229			290			(632		)	217
Less: Comprehensive income attributable to noncontrolling interests	—			—			—			51			—			51
Comprehensive income attributable to common stockholders	$	165		$	165		$	229		$	239		$	(632	)	$	166

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheet

	June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	68		$	10		$	45		$	735		$	—		$	858
Accounts and notes receivable—net	145			512			1,376			804			(2,524		)	313
Inventories	—			—			136			154			—			290
Prepaid income taxes	—			—			—			1			—			1
Other current assets	—			—			18			8			—			26
Total current assets	213			522			1,575			1,702			(2,524		)	1,488
Property, plant and equipment—net	—			—			109			8,227			—			8,336
Investments in affiliates	3,893			8,377			6,719			101			(18,989		)	101
Goodwill	—			—			2,064			289			—			2,353
Operating lease right-of-use assets	—			—			276			5			—			281
Other assets	—			3			146			327			(172		)	304
Total assets	$	4,106		$	8,902		$	10,889		$	10,651		$	(21,685	)	$	12,863
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	1,040		$	293		$	1,309		$	298		$	(2,524	)	$	416
Income taxes payable	—			—			13			—			—			13
Customer advances	—			—			21			—			—			21
Current operating lease liabilities	—			—			87			2			—			89
Current maturities of long-term debt	—			498			—			—			—			498
Other current liabilities	—			—			5			—			—			5
Total current liabilities	1,040			791			1,435			300			(2,524		)	1,042
Long-term debt, net of current maturities	—			4,203			44			126			(170		)	4,203
Dividends payable—mandatorily redeemable preferred shares	—			—			—			2			(2		)	—
Deferred income taxes	—			—			1,047			160			—			1,207
Operating lease liabilities	—			—			194			3			—			197
Other liabilities	—			15			230			151			—			396
Equity:
Stockholders’ equity:
Preferred stock	—			—			—			—			—			—
Common stock	2			—			—			5,147			(5,147		)	2
Paid-in capital	1,299			1,799			8,760			1,263			(11,822		)	1,299
Retained earnings	2,111			2,438			(558		)	1,039			(2,919		)	2,111
Treasury stock	(2		)	—			—			—			—			(2		)
Accumulated other comprehensive loss	(344		)	(344		)	(255		)	(300		)	899			(344		)
Total stockholders’ equity	3,066			3,893			7,947			7,149			(18,989		)	3,066
Noncontrolling interests	—			—			(8		)	2,760			—			2,752
Total equity	3,066			3,893			7,939			9,909			(18,989		)	5,818
Total liabilities and equity	$	4,106		$	8,902		$	10,889		$	10,651		$	(21,685	)	$	12,863

Condensed Consolidating Balance Sheet

	December 31, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations and Reclassifications			Consolidated
	(in millions)
Assets
Current assets:
Cash and cash equivalents	$	36		$	27		$	65		$	554		$	—		$	682
Accounts and notes receivable—net	135			500			1,203			911			(2,514		)	235
Inventories	—			4			142			163			—			309
Prepaid income taxes	—			—			24			4			—			28
Other current assets	—			—			15			5			—			20
Total current assets	171			531			1,449			1,637			(2,514		)	1,274
Property, plant and equipment—net	—			—			118			8,505			—			8,623
Investments in affiliates	3,656			8,208			6,857			94			(18,722		)	93
Goodwill	—			—			2,064			289			—			2,353
Other assets	—			4			126			320			(132		)	318
Total assets	$	3,827		$	8,743		$	10,614		$	10,845		$	(21,368	)	$	12,661
Liabilities and Equity
Current liabilities:
Accounts and notes payable and accrued expenses	$	870		$	374		$	1,429		$	386		$	(2,514	)	$	545
Income taxes payable	—			—			5			—			—			5
Customer advances	—			—			149			—			—			149
Other current liabilities	—			—			6			—			—			6
Total current liabilities	870			374			1,589			386			(2,514		)	705
Long-term debt	—			4,698			43			89			(132		)	4,698
Deferred income taxes	—			—			960			157			—			1,117
Other liabilities	—			15			232			163			—			410
Equity:
Stockholders’ equity:
Preferred stock	—			—			—			—			—			—
Common stock	2			—			—			5,363			(5,363		)	2
Paid-in capital	1,368			1,799			9,070			1,265			(12,134		)	1,368
Retained earnings	2,463			2,229			(995		)	965			(2,199		)	2,463
Treasury stock	(504		)	—			—			—			—			(504		)
Accumulated other comprehensive loss	(372		)	(372		)	(277		)	(324		)	974			(371		)
Total stockholders’ equity	2,957			3,656			7,798			7,269			(18,722		)	2,958
Noncontrolling interests	—			—			(8		)	2,781			—			2,773
Total equity	2,957			3,656			7,790			10,050			(18,722		)	5,731
Total liabilities and equity	$	3,827		$	8,743		$	10,614		$	10,845		$	(21,368	)	$	12,661

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows

	Six months ended June 30, 2019
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	374		$	375		$	437		$	454		$	(1,202	)	$	438
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	—			4			12			424			—			440
Deferred income taxes	—			—			86			(1		)	—			85
Stock-based compensation expense	17			—			—			—			—			17
Unrealized net loss on natural gas derivatives	—			—			1			—			—			1
Unrealized loss on embedded derivative	—			—			2			—			—			2
Gain on disposal of property, plant and equipment	—			—			(45		)	—			—			(45		)
Undistributed earnings of affiliates—net	(375		)	(451		)	(376		)	(10		)	1,202			(10		)
Changes in:
Intercompany accounts receivable/accounts payable—net	(9		)	(11		)	(22		)	42			—			—
Accounts receivable—net	—			(1		)	(70		)	(7		)	—			(78		)
Inventories	—			4			5			12			—			21
Accrued and prepaid income taxes	(1		)	(20		)	63			(7		)	—			35
Accounts and notes payable and accrued expenses	—			(4		)	(21		)	(69		)	—			(94		)
Customer advances	—			—			(128		)	—			—			(128		)
Other—net	—			—			2			7			—			9
Net cash provided by (used in) operating activities	6			(104		)	(54		)	845			—			693
Investing Activities:
Additions to property, plant and equipment	—			—			(8		)	(146		)	—			(154		)
Proceeds from sale of property, plant and equipment	—			—			55			8			—			63
Distributions received from unconsolidated affiliates	—			225			209			(434		)	—			—
Net cash provided by (used in) investing activities	—			225			256			(572		)	—			(91		)
Financing Activities:
Long-term debt—net	—			—			(39		)	39			—			—
Short-term debt—net	199			29			(183		)	(45		)	—			—
Dividends paid on common stock	(133		)	(167		)	—			—			167			(133		)
Dividends to/from affiliates	167			—			—			—			(167		)	—
Distribution to noncontrolling interest	—			—			—			(86		)	—			(86		)
Purchases of treasury stock	(209		)	—			—			—			—			(209		)
Issuances of common stock under employee stock plans	6			—			—			—			—			6
Shares withheld for taxes	(4		)	—			—			—			—			(4		)
Net cash provided by (used in) financing activities	26			(138		)	(222		)	(92		)	—			(426		)
Increase (decrease) in cash and cash equivalents	32			(17		)	(20		)	181			—			176
Cash and cash equivalents at beginning of period	36			27			65			554			—			682
Cash and cash equivalents at end of period	$	68		$	10		$	45		$	735		$	—		$	858

Condensed Consolidating Statement of Cash Flows

	Six months ended June 30, 2018
	Parent			CF Industries			Subsidiary Guarantors			Non- Guarantors			Eliminations			Consolidated
	(in millions)
Operating Activities:
Net earnings	$	211		$	211		$	263		$	337		$	(760	)	$	262
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization	—			4			11			419			—			434
Deferred income taxes	—			—			12			(10		)	—			2
Stock-based compensation expense	11			—			—			—			—			11
Unrealized net loss (gain) on natural gas derivatives	—			—			(5		)	(3		)	—			(8		)
Unrealized loss on embedded derivative	—			—			1			—			—			1
Undistributed earnings of affiliates—net	(211		)	(275		)	(274		)	(3		)	760			(3		)
Changes in:
Intercompany accounts receivable/accounts payable—net	(15		)	(84		)	124			(25		)	—			—
Accounts receivable—net	—			(16		)	(20		)	2			—			(34		)
Inventories	—			4			4			13			—			21
Accrued and prepaid income taxes	—			(18		)	69			1			—			52
Accounts and notes payable and accrued expenses	—			(9		)	(1		)	(36		)	—			(46		)
Customer advances	—			—			(68		)	—			—			(68		)
Other—net	—			(1		)	4			(29		)	—			(26		)
Net cash (used in) provided by operating activities	(4		)	(184		)	120			666			—			598
Investing Activities:
Additions to property, plant and equipment	—			—			(4		)	(141		)	—			(145		)
Proceeds from sale of property, plant and equipment	—			—			—			16			—			16
Distributions received from unconsolidated affiliates	—			—			184			(174		)	—			10
Investments in consolidated subs - capital contributions	—			(31		)	(415		)	446			—			—
Other—net	—			—			—			1			—			1
Net cash (used in) provided by investing activities	—			(31		)	(235		)	148			—			(118		)
Financing Activities:
Long-term debt—net	—			—			178			(178		)	—			—
Short-term debt—net	141			202			(371		)	28			—			—
Financing fees	—			1			—			—			—			1
Dividends paid on common stock	(140		)	—			—			(49		)	49			(140		)
Dividends to/from affiliates	—			—			49			—			(49		)	—
Acquisition of noncontrolling interest in TNCLP	—			—			—			(388		)	—			(388		)
Distributions to noncontrolling interests	—			—			—			(59		)	—			(59		)
Issuances of common stock under employee stock plans	4			—			—			—			—			4
Shares withheld for taxes	(1		)	—			—			—			—			(1		)
Net cash provided by (used in) financing activities	4			203			(144		)	(646		)	—			(583		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(4		)	—			(4		)
(Decrease) increase in cash and cash equivalents	—			(12		)	(259		)	164			—			(107		)
Cash and cash equivalents at beginning of period	—			15			388			432			—			835
Cash and cash equivalents at end of period	$	—		$	3		$	129		$	596		$	—		$	728

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Background and Basis of Presentation (Details)	Jun. 30, 2019
Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments
Equity method investments
Ownership interest (as a percent)	50.00%

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Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 1,502.0	$ 1,300.0	$ 2,503.0	$ 2,257.0
Customer advances	21.0		21.0		$ 149.0
Amount of remaining performance obligation	1,200.0		1,200.0
Revenue, Performance Obligation, description of returns and other similar obligations, unfulfilled minimum contractual right of payment	264.0		264.0
North America
Disaggregation of Revenue [Line Items]
Net sales	1,324.0	1,097.0	2,166.0	1,879.0
Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	$ 178.0	$ 203.0	$ 337.0	$ 378.0

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Revenue Recognition - Revenue by Product and by Geography (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 1,502.0	$ 1,300.0	$ 2,503.0	$ 2,257.0
North America
Disaggregation of Revenue [Line Items]
Net sales	1,324.0	1,097.0	2,166.0	1,879.0
Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	178.0	203.0	337.0	378.0
Ammonia
Disaggregation of Revenue [Line Items]
Net sales	473.0	374.0	660.0	586.0
Ammonia | North America
Disaggregation of Revenue [Line Items]
Net sales	443.0	349.0	603.0	517.0
Ammonia | Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	30.0	25.0	57.0	69.0
Granular Urea
Disaggregation of Revenue [Line Items]
Net sales	433.0	360.0	776.0	624.0
Granular Urea | North America
Disaggregation of Revenue [Line Items]
Net sales	413.0	345.0	748.0	609.0
Granular Urea | Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	20.0	15.0	28.0	15.0
UAN
Disaggregation of Revenue [Line Items]
Net sales	369.0	339.0	625.0	622.0
UAN | North America
Disaggregation of Revenue [Line Items]
Net sales	346.0	290.0	588.0	536.0
UAN | Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	23.0	49.0	37.0	86.0
AN
Disaggregation of Revenue [Line Items]
Net sales	126.0	124.0	253.0	224.0
AN | North America
Disaggregation of Revenue [Line Items]
Net sales	54.0	49.0	100.0	94.0
AN | Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	72.0	75.0	153.0	130.0
Other
Disaggregation of Revenue [Line Items]
Net sales	101.0	103.0	189.0	201.0
Other | North America
Disaggregation of Revenue [Line Items]
Net sales	68.0	64.0	127.0	123.0
Other | Europe and Other
Disaggregation of Revenue [Line Items]
Net sales	$ 33.0	$ 39.0	$ 62.0	$ 78.0

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Revenue Recognition - Performance Obligations (Details) $ in Millions	Jun. 30, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Amount of remaining performance obligation	$ 1,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Performance Obligation, description of returns and other similar obligations, unfulfilled minimum contractual right of payment	$ 264
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent	13.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent	45.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent	45.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent	28.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Percent	28.00%

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Net Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net earnings attributable to common stockholders	$ 283	$ 148	$ 373	$ 211
Net earnings	$ 320	$ 174	$ 438	$ 262
Basic earnings per common share:
Weighted-average common shares outstanding	221.1	234.0	222.2	233.9
Net earnings attributable to common stockholders (in dollars per share)	$ 1.28	$ 0.63	$ 1.68	$ 0.90
Diluted earnings per common share:
Weighted-average common shares outstanding	221.1	234.0	222.2	233.9
Dilutive common shares—stock options (in shares)	1.2	0.9	1.2	0.9
Diluted weighted-average shares outstanding	222.3	234.9	223.4	234.8
Net earnings attributable to common stockholders diluted (in dollars per share)	$ 1.28	$ 0.63	$ 1.67	$ 0.90
Antidilutive securities excluded from computation of EPS (in shares)	1.5	2.0	1.5	2.0
Retained Earnings
Net earnings attributable to common stockholders	$ 283
Net earnings		$ 148	$ 373	$ 211

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Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 250	$ 272
Raw materials, spare parts and supplies	40	37
Total inventories	$ 290	$ 309

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Property, Plant and Equipment-Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment-Net
Gross property plant and equipment	$ 13,405		$ 13,405		$ 13,307
Less: Accumulated depreciation and amortization	5,069		5,069		4,684
Net property, plant and equipment	8,336		8,336		8,623
Construction in progress expenditures incurred but not yet paid			43	$ 49	48	$ 46
Proceeds from Sale of Other Assets	55
Gain (Loss) on Disposition of Property Plant Equipment	45		45	0
Depreciation and amortization	247	$ 236	430	421
Land
Property, Plant and Equipment-Net
Gross property plant and equipment	70		70		69
Machinery and equipment
Property, Plant and Equipment-Net
Gross property plant and equipment	12,178		12,178		12,127
Changes in plant turnaround activity
Balance at the beginning of the period			252	208	208
Additions			22	41
Depreciation			(57)	(56)
Effect of exchange rate changes			2	(2)
Balance at the end of the period	219	$ 191	219	$ 191	252	$ 208
Buildings and improvements
Property, Plant and Equipment-Net
Gross property plant and equipment	882		882		886
Construction in progress
Property, Plant and Equipment-Net
Gross property plant and equipment	$ 275		$ 275		$ 225

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Goodwill and Other Intangible Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Goodwill
Goodwill, Beginning Balance	$ 2,353
Effect of exchange rate changes(1)	0
Goodwill, Ending Balance	2,353
Ammonia
Goodwill
Goodwill, Beginning Balance	586
Effect of exchange rate changes(1)	0
Goodwill, Ending Balance	586
Granular Urea
Goodwill
Goodwill, Beginning Balance	828
Effect of exchange rate changes(1)	0
Goodwill, Ending Balance	828
UAN
Goodwill
Goodwill, Beginning Balance	576
Effect of exchange rate changes(1)	0
Goodwill, Ending Balance	576
AN
Goodwill
Goodwill, Beginning Balance	292
Effect of exchange rate changes(1)	0
Goodwill, Ending Balance	292
Other
Goodwill
Goodwill, Beginning Balance	71
Effect of exchange rate changes(1)	0
Goodwill, Ending Balance	$ 71

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Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Identifiable intangibles
Gross Carrying Amount	$ 157		$ 157		$ 167
Accumulated Amortization	(46)		(46)		(52)
Net	111		111		115
Amortization expense	2	$ 3	$ 4	$ 5
Finite-Lived Intangible Asset, Useful Life			20 years
Total estimated amortization expense for the five succeeding fiscal years
Remainder of 2019	4		$ 4
2020	8		8
2021	8		8
2022	8		8
2023	8		8
2024	8		8
Customer relationships
Identifiable intangibles
Gross Carrying Amount	127		127		127
Accumulated Amortization	(40)		(40)		(37)
Net	87		87		90
TerraCair brand
Identifiable intangibles
Gross Carrying Amount	0		0		10
Accumulated Amortization	0		0		(10)
Net	0		0		0
Trade names
Identifiable intangibles
Gross Carrying Amount	30		30		30
Accumulated Amortization	(6)		(6)		(5)
Net	$ 24		$ 24		$ 25

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Equity Method Investment-Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Equity method investments
Equity in earnings of operating affiliate	$ 1	$ 18	$ 8	$ 25
Operating equity method investments | Maximum | Property, plant and equipment
Equity method investments
Number of years that the increased basis for property, plant and equipment and identifiable intangibles will be amortized			14 years
Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments
Equity method investments
Unrecorded Unconditional Purchase Obligation, Percent	50.00%
Ownership interest (as a percent)	50.00%		50.00%
Equity Method Investments	$ 101		$ 101
Carrying value of investments in excess of the entity's share of the affiliates' book value	47		$ 47
Obligation to purchase ammonia (as a percent)			50% of the ammonia produced by PLNL
Purchases of ammonia from PLNL	12	$ 9	$ 34	38
The Board of Inland Revenue [Member] | Point Lisas Nitrogen Limited (PLNL) | Operating equity method investments
Equity method investments
Income Tax Examination, Estimate of Possible Loss			12
Income Tax Examination, Penalties and Interest Accrued	$ 22		$ 22
Gain (Loss) Related to Litigation Settlement				$ 19

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Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Investment
Cash	$ 52	$ 34
Cash equivalents:
Cash and cash equivalents, adjusted cost	858	682
Cash and cash equivalents, fair value disclosure	858	682
Nonqualified employee benefit trusts
Cash equivalents:
Available-for-sale securities, adjusted cost	17	17
Available-for-sale securities, gross unrealized gain	2	2
Available-for-sale securities, gross unrealized loss	0	0
Available-for-sale securities, fair value	19	19
Other debt securities
Cash equivalents:
Cash equivalents, adjusted cost	12	25
Cash equivalents, fair value	12	25
U.S. and Canadian government obligations
Cash equivalents:
Cash equivalents, adjusted cost	794	623
Cash equivalents, fair value	$ 794	$ 623

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Fair Value Measurements (Details 2) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2019	Jun. 30, 2018
Assets and liabilities measured at fair value on a recurring basis
Payments for Strategic Venture Compliance	$ 5	$ 5	$ 5	$ 5
Unrealized Loss on Embedded Derivative Instrument				2	$ 1
Recurring basis
Assets and liabilities measured at fair value on a recurring basis
Cash equivalents	648			806
Nonqualified employee benefit trusts	19			19
Embedded derivative liability	(21)			(23)
Recurring basis | Quoted Prices in Active Markets (Level 1)
Assets and liabilities measured at fair value on a recurring basis
Cash equivalents	648			806
Nonqualified employee benefit trusts	19			19
Embedded derivative liability	0			0
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets and liabilities measured at fair value on a recurring basis
Cash equivalents	0			0
Nonqualified employee benefit trusts	0			0
Embedded derivative liability	(21)			(23)
Recurring basis | Fair Value, Inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis
Cash equivalents	0			0
Nonqualified employee benefit trusts	0			0
Embedded derivative liability	0			0
Estimate of Fair Value Measurement [Member]
Assets and liabilities measured at fair value on a recurring basis
Fair value of long-term debt, including current portion	4,265			4,669
Reported Value Measurement [Member]
Assets and liabilities measured at fair value on a recurring basis
Fair value of long-term debt, including current portion	$ 4,698			$ 4,701

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Income Taxes Incomes Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, Percent	24.20%	20.20%
Income tax provision (benefit)	$ 102	$ 44	$ 94	$ 61
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	422	218	532	323
Less: Net earnings attributable to noncontrolling interests	$ 37	$ 26	65	$ 51
Effective Income Tax Rate Excluding The Earnings Attributable To The Noncontrolling Interests	26.50%	23.00%
Prepaid income taxes	$ 1		1		$ 28
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act 2017, Incomplete Accounting, Transition Tax Liability, adjustment		$ 20
Letter of Credit | Letter of Credit
Operating Loss Carryforwards [Line Items]
Line of Credit Facility, Fair Value of Amount Outstanding	$ 131		131
Operating equity method investments | Point Lisas Nitrogen Limited (PLNL) | The Board of Inland Revenue [Member]
Operating Loss Carryforwards [Line Items]
Income Tax Examination, Estimate of Possible Loss			12
LOUISIANA | State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount			$ (30)

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Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Financing agreements
Interest on borrowings(1)	$ 57	$ 57	$ 114	$ 114
Fees on financing agreements(1)	3	4	6	7
Interest on tax liabilities	0	0	0	1
Interest capitalized	(1)	0	(1)	(1)
Interest expense	$ 59	$ 61	$ 119	$ 121

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Financing Agreements (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018	Nov. 21, 2016	Oct. 31, 2016
Debt Instruments
Principal	$ 4,750.0	$ 4,750.0
Carrying amount	4,701.0	4,698.0
Long-term debt, net of current maturities	4,203.0	4,698.0
Long-term Debt, Excluding Current Maturities, Gross	4,250.0	4,750.0
Long-term Debt, Current Maturities, Gross	500.0	0.0
CF Industries
Debt Instruments
Unamortized debt discount	11.0
Total deferred debt issuance costs	$ 38.0	$ 41.0
CF Industries | Senior Notes | Unsecured senior notes 7.125% due 2020
Financing agreements
Interest rate (as a percent)	7.125%	7.125%
Debt Instruments
Effective Interest Rate (percent)	7.529%	7.529%
Principal	$ 500.0	$ 500.0
Carrying amount	$ 498.0	$ 497.0
CF Industries | Senior Notes | Senior notes 3.450% due 2023
Financing agreements
Interest rate (as a percent)	3.45%	3.45%
Debt Instruments
Effective Interest Rate (percent)	3.562%	3.562%
Principal	$ 750.0	$ 750.0
Carrying amount	$ 747.0	$ 747.0
CF Industries | Senior Notes | Senior notes 5.150% due 2034
Financing agreements
Interest rate (as a percent)	5.15%	5.15%
Debt Instruments
Effective Interest Rate (percent)	5.279%	5.279%
Principal	$ 750.0	$ 750.0
Carrying amount	$ 740.0	$ 740.0
CF Industries | Senior Notes | Senior notes 4.950% due 2043
Financing agreements
Interest rate (as a percent)	4.95%	4.95%
Debt Instruments
Effective Interest Rate (percent)	5.031%	5.031%
Principal	$ 750.0	$ 750.0
Carrying amount	$ 742.0	$ 741.0
CF Industries | Senior Notes | Senior notes 5.375% due 2044
Financing agreements
Interest rate (as a percent)	5.375%	5.375%
Debt Instruments
Effective Interest Rate (percent)	5.465%	5.465%
Principal	$ 750.0	$ 750.0
Carrying amount	$ 741.0	$ 741.0
CF Industries | Senior Notes | Senior Notes 3.400 Percent Due 2021 [Member] [Member]
Financing agreements
Interest rate (as a percent)	3.40%	3.40%
Debt Instruments
Effective Interest Rate (percent)	3.782%	3.782%
Principal	$ 500.0	$ 500.0	$ 500.0
Carrying amount	$ 495.0	$ 495.0
CF Industries | Senior Notes | Senior Notes 4.500 Percent Due 2026] [Member]
Financing agreements
Interest rate (as a percent)	4.50%	4.50%
Debt Instruments
Effective Interest Rate (percent)	4.759%	4.759%
Principal	$ 750.0	$ 750.0	$ 750.0
Carrying amount	738.0	$ 737.0
Revolving Credit Facility | CF Industries | Letter of Credit | Amendment No. 3 to the Third Amended and Restated Revolving Credit Agreement [Member]
Financing agreements
Maximum borrowing capacity				$ 750.0
Letter of Credit | Letter of Credit
Financing agreements
Maximum borrowing capacity	145.0
Debt Instruments
Line of Credit Facility, increase in Maximum Borrowing Capacity	$ 20.0

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Financing Agreements - Narrative (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Nov. 21, 2016	Jul. 29, 2016
Financing agreements
Principal	$ 4,750,000,000	$ 4,750,000,000
Letter of Credit | Letter of Credit
Financing agreements
Maximum borrowing capacity	145,000,000
Line of Credit Facility, Fair Value of Amount Outstanding	131,000,000
CF Industries
Financing agreements
Unamortized debt discount	11,000,000
Total deferred debt issuance costs	38,000,000	41,000,000
CF Industries | Credit Agreement
Financing agreements
Available credit	750,000,000
Outstanding letters of credit	0
Long-term Line of Credit	$ 0	$ 0
CF Industries | July 2016 Credit Agreement Amendment | Letter of Credit | Letter of Credit
Financing agreements
Maximum borrowing capacity				$ 125,000,000
CF Industries | Senior Notes 3.400 Percent Due 2021 [Member] [Member] | Senior Notes
Financing agreements
Interest rate (as a percent)	3.40%	3.40%
Principal	$ 500,000,000	$ 500,000,000	$ 500,000,000
CF Industries | Senior Notes 4.500 Percent Due 2026] [Member] | Senior Notes
Financing agreements
Interest rate (as a percent)	4.50%	4.50%
Principal	$ 750,000,000	$ 750,000,000	$ 750,000,000

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Leases (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 24,000,000	$ 47,000,000
Short-term lease cost	7,000,000	14,000,000
Total lease cost	31,000,000	61,000,000
Operating Lease, Payments		42,000,000
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability		32,000,000
Operating lease right-of-use assets	281,000,000	281,000,000	$ 0
Operating Lease, Liability, Current	(89,000,000)	(89,000,000)	0
Operating lease liabilities	197,000,000	197,000,000	0
Operating Lease, Liability	$ 286,000,000	$ 286,000,000
Operating Lease, Weighted Average Remaining Lease Term	5 years	5 years
Operating Lease, Weighted Average Discount Rate, Percent	4.90%	4.90%
Operating lease payments, remainder of 2019	$ 46,000,000	$ 46,000,000
Operating lease payments, 2020	85,000,000	85,000,000
Operating lease payments, 2021	64,000,000	64,000,000
Operating lease payments, 2022	42,000,000	42,000,000
Operating lease payments, 2023	28,000,000	28,000,000
Operating lease payments, Thereafter	57,000,000	57,000,000
Lessee, Operating Lease, Liability, Payments, Due	322,000,000	322,000,000
Lessee, operating lease, lease not yet commenced, amount	18,000,000	18,000,000
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	$ (36,000,000)	$ (36,000,000)
Future minimum payments due, 2019			93,000,000
Future minimum payments due, 2020			80,000,000
Future minimum payments due, 2021			59,000,000
Future minimum payments due, 2022			41,000,000
Future minimum payments due, 2023			28,000,000
Future minimum payments due, Thereafter			62,000,000
Future minimum payments due, total			$ 363,000,000
Minimum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	5 years	5 years
Maximum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	10 years	10 years
Rail car | Minimum
Lessee, Lease, Description [Line Items]
Term	1 year	1 year
Rail car | Maximum
Lessee, Lease, Description [Line Items]
Term	11 years	11 years
Barge charter | Minimum
Lessee, Lease, Description [Line Items]
Term	1 year	1 year
Barge charter | Maximum
Lessee, Lease, Description [Line Items]
Term	7 years	7 years
Terminal and warehouse storage | Minimum
Lessee, Lease, Description [Line Items]
Term	1 year	1 year
Terminal and warehouse storage | Maximum
Lessee, Lease, Description [Line Items]
Term	5 years	5 years

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Noncontrolling Interests (Details)		3 Months Ended				6 Months Ended
	Apr. 02, 2018 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2019 USD ($) T	Jun. 30, 2018 USD ($)	Apr. 01, 2018	Feb. 07, 2018 shares	Feb. 01, 2016
Noncontrolling interest
Distributions Payable to Minority Interest				$ 0			$ 0
Payments for Strategic Venture Compliance			$ 5,000,000	5,000,000	$ 5,000,000	$ 5,000,000
Distributions to noncontrolling interests						(86,000,000)	(59,000,000)
Acquisition of noncontrolling interests in TNCLP						0	(388,000,000)
TNCLP
Noncontrolling interest
Distributions Payable to Minority Interest				0			0
Distributions to noncontrolling interests							(10,000,000)
Acquisition of noncontrolling interests in TNCLP							331,000,000
Percentage of aggregate ownership held by entity through general and limited partnership								75.30%
Percentage of ownership interest held by outside investors								24.70%
CF Industries Nitrogen, LLC
Noncontrolling interest
Distributions Payable to Minority Interest			0	$ 0		$ 0	0
Maximum Annual Granular Urea Tons Eligible for Purchase | T						1,100,000
Maximum Annual UAN Tons Eligible for Purchase | T						580,000
Distributions to noncontrolling interests						$ (86,000,000)	(49,000,000)
Acquisition of noncontrolling interests in TNCLP						0	0
Recurring basis
Noncontrolling interest
Embedded Derivative, Fair Value of Embedded Derivative Liability			21,000,000			23,000,000
Significant Other Observable Inputs (Level 2) | Recurring basis
Noncontrolling interest
Embedded Derivative, Fair Value of Embedded Derivative Liability			$ 21,000,000			23,000,000
CHS Inc. | CF Industries Nitrogen, LLC
Noncontrolling interest
Percentage of ownership interest held by outside investors										11.00%
Terra Nitrogen Company LP | Terra Nitrogen GP Inc
Noncontrolling interest
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities	$ 5,000,000
business acquisition, number of units purchased | shares									4,612,562
Acquisition of noncontrolling interests in TNCLP	$ (388,000,000)
Paid-In Capital
Noncontrolling interest
Distributions to noncontrolling interests						$ 0	0
Acquisition of noncontrolling interests in TNCLP							$ 62,000,000
Subsequent Event | CF Industries Nitrogen, LLC
Noncontrolling interest
Distributions to noncontrolling interests		$ (100,000,000)

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Noncontrolling Interests (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Noncontrolling interest
Beginning balance			$ 2,773.0	$ 3,105.0
Earnings attributable to noncontrolling interests	$ 37.0	$ 26.0	65.0	51.0
Distributions declared to noncontrolling interests			(86.0)	(59.0)
Ending balance	2,752.0	2,766.0	2,752.0	2,766.0
Distributions payable to noncontrolling interests:
Beginning balance				0.0
Declaration of distributions payable				59.0
Ending balance		0.0		0.0
TNCLP
Noncontrolling interest
Beginning balance				333.0
Earnings attributable to noncontrolling interests				8.0
Distributions declared to noncontrolling interests				(10.0)
Purchase of the TNCLP Public Units				(331.0)
Ending balance		0.0		0.0
Distributions payable to noncontrolling interests:
Beginning balance				0.0
Declaration of distributions payable				10.0
Distributions to noncontrolling interest				(10.0)
Ending balance		0.0		0.0
CF Industries Nitrogen, LLC
Noncontrolling interest
Beginning balance			2,773.0	2,772.0
Earnings attributable to noncontrolling interests			65.0	43.0
Distributions declared to noncontrolling interests			(86.0)	(49.0)
Purchase of the TNCLP Public Units			0.0	0.0
Ending balance	2,752.0	2,766.0	2,752.0	2,766.0
Distributions payable to noncontrolling interests:
Beginning balance			0.0	0.0
Declaration of distributions payable			86.0	49.0
Distributions to noncontrolling interest			(86.0)	(49.0)
Ending balance	0.0	$ 0.0	0.0	0.0
Noncontrolling Interests
Noncontrolling interest
Earnings attributable to noncontrolling interests	$ 37.0		65.0
Distributions declared to noncontrolling interests			$ (86.0)	(59.0)
Purchase of the TNCLP Public Units				(331.0)
Distributions payable to noncontrolling interests:
Distributions to noncontrolling interest				$ (59.0)

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Stockholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017
Changes to accumulated other comprehensive income (loss)
Balance at the beginning of the period			$ (371.0)
Balance at the end of the period	$ (344.0)		(344.0)
Income tax provision (benefit)	102.0	$ 44.0	94.0	$ 61.0
Net earnings	320.0	174.0	438.0	262.0
Foreign Currency Translation Adjustment
Changes to accumulated other comprehensive income (loss)
Balance at the beginning of the period			(250.0)	(145.0)
Other Comprehensive Income Unrealized Holding Gain (Loss) Arising During Period, before Tax				0.0
Other Comprehensive Income Pension and Other Postretirement Benefit Plans Arising During Period before Tax			0.0	0.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			0.0	0.0
Effect of exchange rate changes and deferred taxes			24.0	(50.0)
Balance at the end of the period	(226.0)	(195.0)	(226.0)	(195.0)
Unrealized Gain (Loss) on Securities
Changes to accumulated other comprehensive income (loss)
Balance at the beginning of the period			0.0	1.0
Other Comprehensive Income Unrealized Holding Gain (Loss) Arising During Period, before Tax				(1.0)
Other Comprehensive Income Pension and Other Postretirement Benefit Plans Arising During Period before Tax			0.0	0.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			0.0	0.0
Effect of exchange rate changes and deferred taxes			0.0	0.0
Balance at the end of the period	0.0	(1.0)	0.0	(1.0)
Unrealized Gain (Loss) on Derivatives
Changes to accumulated other comprehensive income (loss)
Balance at the beginning of the period			5.0	4.0
Other Comprehensive Income Unrealized Holding Gain (Loss) Arising During Period, before Tax				0.0
Other Comprehensive Income Pension and Other Postretirement Benefit Plans Arising During Period before Tax			0.0	0.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			0.0	0.0
Effect of exchange rate changes and deferred taxes			0.0	0.0
Balance at the end of the period	5.0	4.0	5.0	4.0
Defined Benefit Plans
Changes to accumulated other comprehensive income (loss)
Balance at the beginning of the period			(126.0)	(123.0)
Other Comprehensive Income Unrealized Holding Gain (Loss) Arising During Period, before Tax				0.0
Other Comprehensive Income Pension and Other Postretirement Benefit Plans Arising During Period before Tax			(5.0)	(5.0)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			(1.0)	(1.0)
Effect of exchange rate changes and deferred taxes			(1.0)	0.0
Balance at the end of the period	(123.0)	(117.0)	(123.0)	(117.0)
Accumulated Other Comprehensive Income (Loss)
Changes to accumulated other comprehensive income (loss)
Balance at the beginning of the period				(263.0)
Other Comprehensive Income Unrealized Holding Gain (Loss) Arising During Period, before Tax				(1.0)
Other Comprehensive Income Pension and Other Postretirement Benefit Plans Arising During Period before Tax			(5.0)	(5.0)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax			1.0	1.0
Effect of exchange rate changes and deferred taxes			23.0	(50.0)
Balance at the end of the period	(344.0)	(309.0)	(344.0)	(309.0)
Net earnings	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Accounting Standards Update 2016-01
Changes to accumulated other comprehensive income (loss)
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 0.0
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustment
Changes to accumulated other comprehensive income (loss)
Cumulative Effect of New Accounting Principle in Period of Adoption					0.0
Accounting Standards Update 2016-01 | Unrealized Gain (Loss) on Securities
Changes to accumulated other comprehensive income (loss)
Cumulative Effect of New Accounting Principle in Period of Adoption					(1.0)
Accounting Standards Update 2016-01 | Unrealized Gain (Loss) on Derivatives
Changes to accumulated other comprehensive income (loss)
Cumulative Effect of New Accounting Principle in Period of Adoption					0.0
Accounting Standards Update 2016-01 | Defined Benefit Plans
Changes to accumulated other comprehensive income (loss)
Cumulative Effect of New Accounting Principle in Period of Adoption					0.0
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss)
Changes to accumulated other comprehensive income (loss)
Cumulative Effect of New Accounting Principle in Period of Adoption					$ (1.0)

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Stockholders' Equity (Details 2) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Feb. 13, 2019	Aug. 01, 2018
Equity [Abstract]
Stock Repurchase Program, Authorized Amount				$ 1,000.0	$ 500.0
Stock Repurchased and Retired During Period, Shares	4,200,000		10,900,000
Stock Repurchased and Retired During Period, Value	$ 178.0		$ 500.0
stock repurchase accrued but unpaid	$ 2.0		$ 33.0
Treasury Stock, Shares, Retired	4,200,000	10,900,000
Treasury stock, shares	42,608		10,982,408

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Contingencies (Details)			6 Months Ended	12 Months Ended
	Apr. 17, 2015 Insurance_company People Plaintiff Entity	Apr. 17, 2013 People	Jun. 30, 2019 Litigation_case	Dec. 31, 2015 mine
Pending Litigation
Loss Contingencies [Line Items]
Number of people killed		15
Number of people injured		200
Number of plaintiffs | Plaintiff	400
Number of entities that filed claims | Entity	9
Number of people that filed claims	325
Number of insurance companies that filed claims | Insurance_company	80
Settled Litigation [Member]
Loss Contingencies [Line Items]
Loss Contingency, Claims Settled, Number | Litigation_case			200
IDAHO
Loss Contingencies [Line Items]
Loss contingency, number of mines | mine				17

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Segment Disclosures (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment data
Net sales	$ 1,502.0	$ 1,300.0	$ 2,503.0	$ 2,257.0
Cost of sales	1,003.0	988.0	1,784.0	1,755.0
Gross margin	499.0	312.0	719.0	502.0
Total other operating costs and expenses	25.0	56.0	87.0	92.0
Equity in earnings of operating affiliate	1.0	18.0	8.0	25.0
Operating earnings	475.0	274.0	640.0	435.0
Ammonia
Segment data
Net sales	473.0	374.0	660.0	586.0
Granular Urea
Segment data
Net sales	433.0	360.0	776.0	624.0
UAN
Segment data
Net sales	369.0	339.0	625.0	622.0
AN
Segment data
Net sales	126.0	124.0	253.0	224.0
Operating Segments | Ammonia
Segment data
Net sales	473.0	374.0	660.0	586.0
Cost of sales	300.0	272.0	466.0	460.0
Gross margin	173.0	102.0	194.0	126.0
Operating Segments | Granular Urea
Segment data
Net sales	433.0	360.0	776.0	624.0
Cost of sales	251.0	255.0	479.0	444.0
Gross margin	182.0	105.0	297.0	180.0
Operating Segments | UAN
Segment data
Net sales	369.0	339.0	625.0	622.0
Cost of sales	277.0	258.0	472.0	488.0
Gross margin	92.0	81.0	153.0	134.0
Operating Segments | AN
Segment data
Net sales	126.0	124.0	253.0	224.0
Cost of sales	94.0	117.0	208.0	191.0
Gross margin	32.0	7.0	45.0	33.0
Operating Segments | Other
Segment data
Net sales	101.0	103.0	189.0	201.0
Cost of sales	81.0	86.0	159.0	172.0
Gross margin	$ 20.0	$ 17.0	$ 30.0	$ 29.0

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Condensed Consolidating Financial Statements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed, Consolidating Statement of Operations
Net sales	$ 1,502.0	$ 1,300.0	$ 2,503.0	$ 2,257.0
Cost of sales	1,003.0	988.0	1,784.0	1,755.0
Gross margin	499.0	312.0	719.0	502.0
Selling, general and administrative expenses	62.0	53.0	120.0	110.0
Other operating—net	(37.0)	3.0	(33.0)	(18.0)
Total other operating costs and expenses	25.0	56.0	87.0	92.0
Equity in earnings of operating affiliate	1.0	18.0	8.0	25.0
Operating earnings	475.0	274.0	640.0	435.0
Interest expense	59.0	61.0	119.0	121.0
Interest expense—mandatorily redeemable preferred shares	0.0		0.0
Interest income	(4.0)	(2.0)	(8.0)	(5.0)
Net earnings of wholly owned subsidiaries	0.0	0.0	0.0	0.0
Other non-operating—net	(2.0)	(3.0)	(3.0)	(4.0)
Earnings before income taxes	422.0	218.0	532.0	323.0
Income tax (benefit) provision	102.0	44.0	94.0	61.0
Net earnings	320.0	174.0	438.0	262.0
Less: Net earnings attributable to noncontrolling interests	37.0	26.0	65.0	51.0
Net earnings attributable to common stockholders	283.0	148.0	373.0	211.0
Other comprehensive income	(3.0)	(61.0)	27.0	(45.0)
Comprehensive income	317.0	113.0	465.0	217.0
Less: Comprehensive income attributable to noncontrolling interests	37.0	26.0	65.0	51.0
Comprehensive income attributable to common stockholders	280.0	87.0	400.0	166.0
Reportable legal entities | Parent
Condensed, Consolidating Statement of Operations
Net sales	0.0	0.0	0.0	0.0
Cost of sales	0.0	0.0	0.0	0.0
Gross margin	0.0	0.0	0.0	0.0
Selling, general and administrative expenses	1.0	0.0	2.0	1.0
Other operating—net	0.0	0.0	0.0	0.0
Total other operating costs and expenses	1.0	0.0	2.0	1.0
Equity in earnings of operating affiliate	0.0	0.0	0.0	0.0
Operating earnings	(1.0)	0.0	(2.0)	(1.0)
Interest expense	1.0	0.0	1.0	0.0
Interest expense—mandatorily redeemable preferred shares	0.0		0.0
Interest income	0.0	0.0	(1.0)	(1.0)
Net earnings of wholly owned subsidiaries	(285.0)	(148.0)	(375.0)	(211.0)
Other non-operating—net	0.0	0.0	0.0	0.0
Earnings before income taxes	283.0	148.0	373.0	211.0
Income tax (benefit) provision	(1.0)	0.0	(1.0)	0.0
Net earnings	284.0	148.0	374.0	211.0
Less: Net earnings attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Net earnings attributable to common stockholders	284.0	148.0	374.0	211.0
Other comprehensive income	(3.0)	(61.0)	28.0	(46.0)
Comprehensive income	281.0	87.0	402.0	165.0
Less: Comprehensive income attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Comprehensive income attributable to common stockholders	281.0	87.0	402.0	165.0
Reportable legal entities | CF Industries
Condensed, Consolidating Statement of Operations
Net sales	96.0	85.0	186.0	190.0
Cost of sales	69.0	69.0	157.0	159.0
Gross margin	27.0	16.0	29.0	31.0
Selling, general and administrative expenses	(2.0)	2.0	(1.0)	3.0
Other operating—net	3.0	5.0	4.0	(8.0)
Total other operating costs and expenses	1.0	7.0	3.0	(5.0)
Equity in earnings of operating affiliate	0.0	(1.0)	1.0	2.0
Operating earnings	26.0	8.0	27.0	38.0
Interest expense	62.0	61.0	123.0	123.0
Interest expense—mandatorily redeemable preferred shares	0.0		0.0
Interest income	0.0	(1.0)	0.0	(3.0)
Net earnings of wholly owned subsidiaries	(314.0)	(188.0)	(451.0)	(275.0)
Other non-operating—net	0.0	0.0	0.0	0.0
Earnings before income taxes	278.0	136.0	355.0	193.0
Income tax (benefit) provision	(7.0)	(12.0)	(20.0)	(18.0)
Net earnings	285.0	148.0	375.0	211.0
Less: Net earnings attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Net earnings attributable to common stockholders	285.0	148.0	375.0	211.0
Other comprehensive income	(3.0)	(61.0)	28.0	(46.0)
Comprehensive income	282.0	87.0	403.0	165.0
Less: Comprehensive income attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Comprehensive income attributable to common stockholders	282.0	87.0	403.0	165.0
Reportable legal entities | Subsidiary Guarantors
Condensed, Consolidating Statement of Operations
Net sales	1,262.0	1,063.0	2,001.0	1,775.0
Cost of sales	1,052.0	922.0	1,768.0	1,638.0
Gross margin	210.0	141.0	233.0	137.0
Selling, general and administrative expenses	46.0	33.0	85.0	72.0
Other operating—net	(40.0)	1.0	(39.0)	(2.0)
Total other operating costs and expenses	6.0	34.0	46.0	70.0
Equity in earnings of operating affiliate	0.0	0.0	0.0	0.0
Operating earnings	204.0	107.0	187.0	67.0
Interest expense	0.0	6.0	1.0	10.0
Interest expense—mandatorily redeemable preferred shares	0.0		0.0
Interest income	(5.0)	(2.0)	(8.0)	(5.0)
Net earnings of wholly owned subsidiaries	(199.0)	(139.0)	(376.0)	(274.0)
Other non-operating—net	(1.0)	0.0	(1.0)	0.0
Earnings before income taxes	409.0	242.0	571.0	336.0
Income tax (benefit) provision	104.0	56.0	134.0	73.0
Net earnings	305.0	186.0	437.0	263.0
Less: Net earnings attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Net earnings attributable to common stockholders	305.0	186.0	437.0	263.0
Other comprehensive income	2.0	(35.0)	22.0	(34.0)
Comprehensive income	307.0	151.0	459.0	229.0
Less: Comprehensive income attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Comprehensive income attributable to common stockholders	307.0	151.0	459.0	229.0
Reportable legal entities | Non- Guarantors
Condensed, Consolidating Statement of Operations
Net sales	989.0	918.0	1,939.0	1,803.0
Cost of sales	725.0	761.0	1,478.0	1,461.0
Gross margin	264.0	157.0	461.0	342.0
Selling, general and administrative expenses	19.0	20.0	38.0	42.0
Other operating—net	0.0	(3.0)	2.0	(8.0)
Total other operating costs and expenses	19.0	17.0	40.0	34.0
Equity in earnings of operating affiliate	1.0	19.0	7.0	23.0
Operating earnings	246.0	159.0	428.0	331.0
Interest expense	0.0	2.0	1.0	3.0
Interest expense—mandatorily redeemable preferred shares	1.0		2.0
Interest income	(4.0)	(7.0)	(8.0)	(11.0)
Net earnings of wholly owned subsidiaries	0.0	0.0	0.0	0.0
Other non-operating—net	(1.0)	(3.0)	(2.0)	(4.0)
Earnings before income taxes	250.0	167.0	435.0	343.0
Income tax (benefit) provision	6.0	0.0	(19.0)	6.0
Net earnings	244.0	167.0	454.0	337.0
Less: Net earnings attributable to noncontrolling interests	37.0	26.0	65.0	51.0
Net earnings attributable to common stockholders	207.0	141.0	389.0	286.0
Other comprehensive income	(7.0)	(62.0)	24.0	(47.0)
Comprehensive income	237.0	105.0	478.0	290.0
Less: Comprehensive income attributable to noncontrolling interests	37.0	26.0	65.0	51.0
Comprehensive income attributable to common stockholders	200.0	79.0	413.0	239.0
Eliminations
Condensed, Consolidating Statement of Operations
Net sales	(845.0)	(766.0)	(1,623.0)	(1,511.0)
Cost of sales	(843.0)	(764.0)	(1,619.0)	(1,503.0)
Gross margin	(2.0)	(2.0)	(4.0)	(8.0)
Selling, general and administrative expenses	(2.0)	(2.0)	(4.0)	(8.0)
Other operating—net	0.0	0.0	0.0	0.0
Total other operating costs and expenses	(2.0)	(2.0)	(4.0)	(8.0)
Equity in earnings of operating affiliate	0.0	0.0	0.0	0.0
Operating earnings	0.0	0.0	0.0	0.0
Interest expense	(4.0)	(8.0)	(7.0)	(15.0)
Interest expense—mandatorily redeemable preferred shares	(1.0)		(2.0)
Interest income	5.0	8.0	9.0	15.0
Net earnings of wholly owned subsidiaries	798.0	475.0	1,202.0	760.0
Other non-operating—net	0.0	0.0	0.0	0.0
Earnings before income taxes	(798.0)	(475.0)	(1,202.0)	(760.0)
Income tax (benefit) provision	0.0	0.0	0.0	0.0
Net earnings	(798.0)	(475.0)	(1,202.0)	(760.0)
Less: Net earnings attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Net earnings attributable to common stockholders	(798.0)	(475.0)	(1,202.0)	(760.0)
Other comprehensive income	8.0	158.0	(75.0)	128.0
Comprehensive income	(790.0)	(317.0)	(1,277.0)	(632.0)
Less: Comprehensive income attributable to noncontrolling interests	0.0	0.0	0.0	0.0
Comprehensive income attributable to common stockholders	$ (790.0)	$ (317.0)	$ (1,277.0)	$ (632.0)

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Condensed Consolidating Financial Statements (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed, Consolidating Statement of Comprehensive Income
Net earnings	$ 320	$ 174	$ 438	$ 262
Other comprehensive (loss) income	(3)	(61)	27	(45)
Comprehensive income	317	113	465	217
Less: Comprehensive income attributable to noncontrolling interests	37	26	65	51
Comprehensive income attributable to common stockholders	280	87	400	166
Reportable legal entities | Parent
Condensed, Consolidating Statement of Comprehensive Income
Net earnings	284	148	374	211
Other comprehensive (loss) income	(3)	(61)	28	(46)
Comprehensive income	281	87	402	165
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to common stockholders	281	87	402	165
Reportable legal entities | CF Industries
Condensed, Consolidating Statement of Comprehensive Income
Net earnings	285	148	375	211
Other comprehensive (loss) income	(3)	(61)	28	(46)
Comprehensive income	282	87	403	165
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to common stockholders	282	87	403	165
Reportable legal entities | Subsidiary Guarantors
Condensed, Consolidating Statement of Comprehensive Income
Net earnings	305	186	437	263
Other comprehensive (loss) income	2	(35)	22	(34)
Comprehensive income	307	151	459	229
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to common stockholders	307	151	459	229
Reportable legal entities | Non- Guarantors
Condensed, Consolidating Statement of Comprehensive Income
Net earnings	244	167	454	337
Other comprehensive (loss) income	(7)	(62)	24	(47)
Comprehensive income	237	105	478	290
Less: Comprehensive income attributable to noncontrolling interests	37	26	65	51
Comprehensive income attributable to common stockholders	200	79	413	239
Eliminations
Condensed, Consolidating Statement of Comprehensive Income
Net earnings	(798)	(475)	(1,202)	(760)
Other comprehensive (loss) income	8	158	(75)	128
Comprehensive income	(790)	(317)	(1,277)	(632)
Less: Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to common stockholders	$ (790)	$ (317)	$ (1,277)	$ (632)

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Condensed Consolidating Financial Statements (Details 3) - USD ($) $ in Millions	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 858		$ 682	$ 728		$ 835
Accounts and notes receivable—net	313		235
Inventories	290		309
Prepaid income taxes	1		28
Other current assets	26		20
Total current assets	1,488		1,274
Property, plant and equipment—net	8,336		8,623
Investment in affiliate	101		93
Goodwill	2,353		2,353
Operating lease right-of-use assets	281		0
Other assets	304		318
Total assets	12,863		12,661
Current liabilities:
Accounts and notes payable and accrued expenses	416		545
Income taxes payable	13		5
Customer advances	21		149
Current operating lease liabilities	89		0
Current maturities of long-term debt	498		0
Other current liabilities	5		6
Total current liabilities	1,042		705
Long-term debt, net of current maturities	4,203		4,698
Dividends payable—mandatorily redeemable preferred shares	0
Deferred income taxes	1,207		1,117
Operating lease liabilities	197		0
Other liabilities	396		410
Stockholders’ equity:
Preferred stock	0		0
Common stock	2		2
Paid-in capital	1,299		1,368
Retained earnings	2,111		2,463
Treasury stock	(2)		(504)
Accumulated other comprehensive loss	(344)		(371)
Total stockholders’ equity	3,066		2,958
Noncontrolling interest	2,752		2,773	2,766		3,105
Total equity	5,818	$ 5,670	5,731	6,322	$ 6,665	6,684
Total liabilities and equity	12,863		12,661
Reportable legal entities | Parent
Current assets:
Cash and cash equivalents	68		36	0		0
Accounts and notes receivable—net	145		135
Inventories	0		0
Prepaid income taxes	0		0
Other current assets	0		0
Total current assets	213		171
Property, plant and equipment—net	0		0
Investment in affiliate	3,893		3,656
Goodwill	0		0
Operating lease right-of-use assets	0
Other assets	0		0
Total assets	4,106		3,827
Current liabilities:
Accounts and notes payable and accrued expenses	1,040		870
Income taxes payable	0		0
Customer advances	0		0
Current operating lease liabilities	0
Current maturities of long-term debt	0
Other current liabilities	0		0
Total current liabilities	1,040		870
Long-term debt, net of current maturities	0		0
Dividends payable—mandatorily redeemable preferred shares	0
Deferred income taxes	0		0
Operating lease liabilities	0
Other liabilities	0		0
Stockholders’ equity:
Preferred stock	0		0
Common stock	2		2
Paid-in capital	1,299		1,368
Retained earnings	2,111		2,463
Treasury stock	(2)		(504)
Accumulated other comprehensive loss	(344)		(372)
Total stockholders’ equity	3,066		2,957
Noncontrolling interest	0		0
Total equity	3,066		2,957
Total liabilities and equity	4,106		3,827
Reportable legal entities | CF Industries
Current assets:
Cash and cash equivalents	10		27	3		15
Accounts and notes receivable—net	512		500
Inventories	0		4
Prepaid income taxes	0		0
Other current assets	0		0
Total current assets	522		531
Property, plant and equipment—net	0		0
Investment in affiliate	8,377		8,208
Goodwill	0		0
Operating lease right-of-use assets	0
Other assets	3		4
Total assets	8,902		8,743
Current liabilities:
Accounts and notes payable and accrued expenses	293		374
Income taxes payable	0		0
Customer advances	0		0
Current operating lease liabilities	0
Current maturities of long-term debt	498
Other current liabilities	0		0
Total current liabilities	791		374
Long-term debt, net of current maturities	4,203		4,698
Dividends payable—mandatorily redeemable preferred shares	0
Deferred income taxes	0		0
Operating lease liabilities	0
Other liabilities	15		15
Stockholders’ equity:
Preferred stock	0		0
Common stock	0		0
Paid-in capital	1,799		1,799
Retained earnings	2,438		2,229
Treasury stock	0		0
Accumulated other comprehensive loss	(344)		(372)
Total stockholders’ equity	3,893		3,656
Noncontrolling interest	0		0
Total equity	3,893		3,656
Total liabilities and equity	8,902		8,743
Reportable legal entities | Subsidiary Guarantors
Current assets:
Cash and cash equivalents	45		65	129		388
Accounts and notes receivable—net	1,376		1,203
Inventories	136		142
Prepaid income taxes	0		24
Other current assets	18		15
Total current assets	1,575		1,449
Property, plant and equipment—net	109		118
Investment in affiliate	6,719		6,857
Goodwill	2,064		2,064
Operating lease right-of-use assets	276
Other assets	146		126
Total assets	10,889		10,614
Current liabilities:
Accounts and notes payable and accrued expenses	1,309		1,429
Income taxes payable	13		5
Customer advances	21		149
Current operating lease liabilities	87
Current maturities of long-term debt	0
Other current liabilities	5		6
Total current liabilities	1,435		1,589
Long-term debt, net of current maturities	44		43
Dividends payable—mandatorily redeemable preferred shares	0
Deferred income taxes	1,047		960
Operating lease liabilities	194
Other liabilities	230		232
Stockholders’ equity:
Preferred stock	0		0
Common stock	0		0
Paid-in capital	8,760		9,070
Retained earnings	(558)		(995)
Treasury stock	0		0
Accumulated other comprehensive loss	(255)		(277)
Total stockholders’ equity	7,947		7,798
Noncontrolling interest	(8)		(8)
Total equity	7,939		7,790
Total liabilities and equity	10,889		10,614
Reportable legal entities | Non- Guarantors
Current assets:
Cash and cash equivalents	735		554	596		432
Accounts and notes receivable—net	804		911
Inventories	154		163
Prepaid income taxes	1		4
Other current assets	8		5
Total current assets	1,702		1,637
Property, plant and equipment—net	8,227		8,505
Investment in affiliate	101		94
Goodwill	289		289
Operating lease right-of-use assets	5
Other assets	327		320
Total assets	10,651		10,845
Current liabilities:
Accounts and notes payable and accrued expenses	298		386
Income taxes payable	0		0
Customer advances	0		0
Current operating lease liabilities	2
Current maturities of long-term debt	0
Other current liabilities	0		0
Total current liabilities	300		386
Long-term debt, net of current maturities	126		89
Dividends payable—mandatorily redeemable preferred shares	2
Deferred income taxes	160		157
Operating lease liabilities	3
Other liabilities	151		163
Stockholders’ equity:
Preferred stock	0		0
Common stock	5,147		5,363
Paid-in capital	1,263		1,265
Retained earnings	1,039		965
Treasury stock	0		0
Accumulated other comprehensive loss	(300)		(324)
Total stockholders’ equity	7,149		7,269
Noncontrolling interest	2,760		2,781
Total equity	9,909		10,050
Total liabilities and equity	10,651		10,845
Eliminations
Current assets:
Cash and cash equivalents	0		0	$ 0		$ 0
Accounts and notes receivable—net	(2,524)		(2,514)
Inventories	0		0
Prepaid income taxes	0		0
Other current assets	0		0
Total current assets	(2,524)		(2,514)
Property, plant and equipment—net	0		0
Investment in affiliate	(18,989)		(18,722)
Goodwill	0		0
Operating lease right-of-use assets	0
Other assets	(172)		(132)
Total assets	(21,685)		(21,368)
Current liabilities:
Accounts and notes payable and accrued expenses	(2,524)		(2,514)
Income taxes payable	0		0
Customer advances	0		0
Current operating lease liabilities	0
Current maturities of long-term debt	0
Other current liabilities	0		0
Total current liabilities	(2,524)		(2,514)
Long-term debt, net of current maturities	(170)		(132)
Dividends payable—mandatorily redeemable preferred shares	(2)
Deferred income taxes	0		0
Operating lease liabilities	0
Other liabilities	0		0
Stockholders’ equity:
Preferred stock	0		0
Common stock	(5,147)		(5,363)
Paid-in capital	(11,822)		(12,134)
Retained earnings	(2,919)		(2,199)
Treasury stock	0		0
Accumulated other comprehensive loss	899		974
Total stockholders’ equity	(18,989)		(18,722)
Noncontrolling interest	0		0
Total equity	(18,989)		(18,722)
Total liabilities and equity	$ (21,685)		$ (21,368)

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Condensed Consolidating Financial Statements (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Operating Activities:
Net earnings	$ 320.0	$ 174.0	$ 438.0	$ 262.0
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			440.0	434.0
Deferred income taxes			85.0	2.0
Stock-based compensation expense			17.0	11.0
Unrealized net loss (gain) on natural gas derivatives			1.0	(8.0)
Unrealized Loss on Embedded Derivative Instrument			2.0	1.0
Gain on disposal of property, plant and equipment	(45.0)		(45.0)	0.0
Undistributed earnings of affiliates—net			(10.0)	(3.0)
Changes in:
Intercompany accounts receivable/accounts payable - net			0.0	0.0
Accounts receivable—net			(78.0)	(34.0)
Inventories			21.0	21.0
Accrued and prepaid income taxes			35.0	52.0
Accounts and notes payable and accrued expenses			(94.0)	(46.0)
Customer advances			(128.0)	(68.0)
Other—net			9.0	(26.0)
Net cash provided by operating activities			693.0	598.0
Investing Activities:
Additions to property, plant and equipment			(154.0)	(145.0)
Proceeds from sale of property, plant and equipment			63.0	16.0
Distributions received from unconsolidated affiliates			0.0	10.0
Investments in consolidated subsidiaries - capital contributions				0.0
Other—net			0.0	1.0
Net cash used in investing activities			(91.0)	(118.0)
Financing Activities:
Long-term debt—net			0.0	0.0
Short-term debt—net			0.0	0.0
Financing fees			0.0	1.0
Dividends paid on common stock			(133.0)	(140.0)
Dividends to/from affiliates			0.0	0.0
Acquisition of noncontrolling interests in TNCLP			0.0	(388.0)
Distribution to noncontrolling interest			(86.0)	(59.0)
Purchases of treasury stock			(209.0)	0.0
Issuances of common stock under employee stock plans			6.0	4.0
Shares withheld for taxes			(4.0)	(1.0)
Net cash used in financing activities			(426.0)	(583.0)
Effect of exchange rate changes on cash and cash equivalents			0.0	(4.0)
Increase (decrease) in cash and cash equivalents			176.0	(107.0)
Cash and cash equivalents at beginning of period			682.0	835.0
Cash and cash equivalents at end of period	858.0	728.0	858.0	728.0
Reportable legal entities | Parent
Operating Activities:
Net earnings	284.0	148.0	374.0	211.0
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			0.0	0.0
Deferred income taxes			0.0	0.0
Stock-based compensation expense			17.0	11.0
Unrealized net loss (gain) on natural gas derivatives			0.0	0.0
Unrealized Loss on Embedded Derivative Instrument			0.0	0.0
Gain on disposal of property, plant and equipment			0.0
Undistributed earnings of affiliates—net			(375.0)	(211.0)
Changes in:
Intercompany accounts receivable/accounts payable - net			(9.0)	(15.0)
Accounts receivable—net			0.0	0.0
Inventories			0.0	0.0
Accrued and prepaid income taxes			(1.0)	0.0
Accounts and notes payable and accrued expenses			0.0	0.0
Customer advances			0.0	0.0
Other—net			0.0	0.0
Net cash provided by operating activities			6.0	(4.0)
Investing Activities:
Additions to property, plant and equipment			0.0	0.0
Proceeds from sale of property, plant and equipment			0.0	0.0
Distributions received from unconsolidated affiliates			0.0	0.0
Investments in consolidated subsidiaries - capital contributions				0.0
Other—net				0.0
Net cash used in investing activities			0.0	0.0
Financing Activities:
Long-term debt—net			0.0	0.0
Short-term debt—net			199.0	141.0
Financing fees				0.0
Dividends paid on common stock			(133.0)	(140.0)
Dividends to/from affiliates			167.0	0.0
Acquisition of noncontrolling interests in TNCLP				0.0
Distribution to noncontrolling interest			0.0	0.0
Purchases of treasury stock			(209.0)
Issuances of common stock under employee stock plans			6.0	4.0
Shares withheld for taxes			(4.0)	(1.0)
Net cash used in financing activities			26.0	4.0
Effect of exchange rate changes on cash and cash equivalents				0.0
Increase (decrease) in cash and cash equivalents			32.0	0.0
Cash and cash equivalents at beginning of period			36.0	0.0
Cash and cash equivalents at end of period	68.0	0.0	68.0	0.0
Reportable legal entities | CF Industries
Operating Activities:
Net earnings	285.0	148.0	375.0	211.0
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			4.0	4.0
Deferred income taxes			0.0	0.0
Stock-based compensation expense			0.0	0.0
Unrealized net loss (gain) on natural gas derivatives			0.0	0.0
Unrealized Loss on Embedded Derivative Instrument			0.0	0.0
Gain on disposal of property, plant and equipment			0.0
Undistributed earnings of affiliates—net			(451.0)	(275.0)
Changes in:
Intercompany accounts receivable/accounts payable - net			(11.0)	(84.0)
Accounts receivable—net			(1.0)	(16.0)
Inventories			4.0	4.0
Accrued and prepaid income taxes			(20.0)	(18.0)
Accounts and notes payable and accrued expenses			(4.0)	(9.0)
Customer advances			0.0	0.0
Other—net			0.0	(1.0)
Net cash provided by operating activities			(104.0)	(184.0)
Investing Activities:
Additions to property, plant and equipment			0.0	0.0
Proceeds from sale of property, plant and equipment			0.0	0.0
Distributions received from unconsolidated affiliates			225.0	0.0
Investments in consolidated subsidiaries - capital contributions				(31.0)
Other—net				0.0
Net cash used in investing activities			225.0	(31.0)
Financing Activities:
Long-term debt—net			0.0	0.0
Short-term debt—net			29.0	202.0
Financing fees				1.0
Dividends paid on common stock			(167.0)	0.0
Dividends to/from affiliates			0.0	0.0
Acquisition of noncontrolling interests in TNCLP				0.0
Distribution to noncontrolling interest			0.0	0.0
Purchases of treasury stock			0.0
Issuances of common stock under employee stock plans			0.0	0.0
Shares withheld for taxes			0.0	0.0
Net cash used in financing activities			(138.0)	203.0
Effect of exchange rate changes on cash and cash equivalents				0.0
Increase (decrease) in cash and cash equivalents			(17.0)	(12.0)
Cash and cash equivalents at beginning of period			27.0	15.0
Cash and cash equivalents at end of period	10.0	3.0	10.0	3.0
Reportable legal entities | Subsidiary Guarantors
Operating Activities:
Net earnings	305.0	186.0	437.0	263.0
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			12.0	11.0
Deferred income taxes			86.0	12.0
Stock-based compensation expense			0.0	0.0
Unrealized net loss (gain) on natural gas derivatives			1.0	(5.0)
Unrealized Loss on Embedded Derivative Instrument			2.0	1.0
Gain on disposal of property, plant and equipment			(45.0)
Undistributed earnings of affiliates—net			(376.0)	(274.0)
Changes in:
Intercompany accounts receivable/accounts payable - net			(22.0)	124.0
Accounts receivable—net			(70.0)	(20.0)
Inventories			5.0	4.0
Accrued and prepaid income taxes			63.0	69.0
Accounts and notes payable and accrued expenses			(21.0)	(1.0)
Customer advances			(128.0)	(68.0)
Other—net			2.0	4.0
Net cash provided by operating activities			(54.0)	120.0
Investing Activities:
Additions to property, plant and equipment			(8.0)	(4.0)
Proceeds from sale of property, plant and equipment			55.0	0.0
Distributions received from unconsolidated affiliates			209.0	184.0
Investments in consolidated subsidiaries - capital contributions				(415.0)
Other—net				0.0
Net cash used in investing activities			256.0	(235.0)
Financing Activities:
Long-term debt—net			(39.0)	178.0
Short-term debt—net			(183.0)	(371.0)
Financing fees				0.0
Dividends paid on common stock			0.0	0.0
Dividends to/from affiliates			0.0	49.0
Acquisition of noncontrolling interests in TNCLP				0.0
Distribution to noncontrolling interest			0.0	0.0
Purchases of treasury stock			0.0
Issuances of common stock under employee stock plans			0.0	0.0
Shares withheld for taxes			0.0	0.0
Net cash used in financing activities			(222.0)	(144.0)
Effect of exchange rate changes on cash and cash equivalents				0.0
Increase (decrease) in cash and cash equivalents			(20.0)	(259.0)
Cash and cash equivalents at beginning of period			65.0	388.0
Cash and cash equivalents at end of period	45.0	129.0	45.0	129.0
Reportable legal entities | Non- Guarantors
Operating Activities:
Net earnings	244.0	167.0	454.0	337.0
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			424.0	419.0
Deferred income taxes			(1.0)	(10.0)
Stock-based compensation expense			0.0	0.0
Unrealized net loss (gain) on natural gas derivatives			0.0	(3.0)
Unrealized Loss on Embedded Derivative Instrument			0.0	0.0
Gain on disposal of property, plant and equipment			0.0
Undistributed earnings of affiliates—net			(10.0)	(3.0)
Changes in:
Intercompany accounts receivable/accounts payable - net			42.0	(25.0)
Accounts receivable—net			(7.0)	2.0
Inventories			12.0	13.0
Accrued and prepaid income taxes			(7.0)	1.0
Accounts and notes payable and accrued expenses			(69.0)	(36.0)
Customer advances			0.0	0.0
Other—net			7.0	(29.0)
Net cash provided by operating activities			845.0	666.0
Investing Activities:
Additions to property, plant and equipment			(146.0)	(141.0)
Proceeds from sale of property, plant and equipment			8.0	16.0
Distributions received from unconsolidated affiliates			(434.0)	(174.0)
Investments in consolidated subsidiaries - capital contributions				446.0
Other—net				1.0
Net cash used in investing activities			(572.0)	148.0
Financing Activities:
Long-term debt—net			39.0	(178.0)
Short-term debt—net			(45.0)	28.0
Financing fees				0.0
Dividends paid on common stock			0.0	(49.0)
Dividends to/from affiliates			0.0	0.0
Acquisition of noncontrolling interests in TNCLP				388.0
Distribution to noncontrolling interest			(86.0)	(59.0)
Purchases of treasury stock			0.0
Issuances of common stock under employee stock plans			0.0	0.0
Shares withheld for taxes			0.0	0.0
Net cash used in financing activities			(92.0)	(646.0)
Effect of exchange rate changes on cash and cash equivalents				(4.0)
Increase (decrease) in cash and cash equivalents			181.0	164.0
Cash and cash equivalents at beginning of period			554.0	432.0
Cash and cash equivalents at end of period	735.0	596.0	735.0	596.0
Eliminations
Operating Activities:
Net earnings	(798.0)	(475.0)	(1,202.0)	(760.0)
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization			0.0	0.0
Deferred income taxes			0.0	0.0
Stock-based compensation expense			0.0	0.0
Unrealized net loss (gain) on natural gas derivatives			0.0	0.0
Unrealized Loss on Embedded Derivative Instrument			0.0	0.0
Gain on disposal of property, plant and equipment			0.0
Undistributed earnings of affiliates—net			1,202.0	760.0
Changes in:
Intercompany accounts receivable/accounts payable - net			0.0	0.0
Accounts receivable—net			0.0	0.0
Inventories			0.0	0.0
Accrued and prepaid income taxes			0.0	0.0
Accounts and notes payable and accrued expenses			0.0	0.0
Customer advances			0.0	0.0
Other—net			0.0	0.0
Net cash provided by operating activities			0.0	0.0
Investing Activities:
Additions to property, plant and equipment			0.0	0.0
Proceeds from sale of property, plant and equipment			0.0	0.0
Distributions received from unconsolidated affiliates			0.0	0.0
Investments in consolidated subsidiaries - capital contributions				0.0
Other—net				0.0
Net cash used in investing activities			0.0	0.0
Financing Activities:
Long-term debt—net			0.0	0.0
Short-term debt—net			0.0	0.0
Financing fees				0.0
Dividends paid on common stock			167.0	49.0
Dividends to/from affiliates			(167.0)	(49.0)
Acquisition of noncontrolling interests in TNCLP				0.0
Distribution to noncontrolling interest			0.0	0.0
Purchases of treasury stock			0.0
Issuances of common stock under employee stock plans			0.0	0.0
Shares withheld for taxes			0.0	0.0
Net cash used in financing activities			0.0	0.0
Effect of exchange rate changes on cash and cash equivalents				0.0
Increase (decrease) in cash and cash equivalents			0.0	0.0
Cash and cash equivalents at beginning of period			0.0	0.0
Cash and cash equivalents at end of period	$ 0.0	$ 0.0	$ 0.0	$ 0.0